Telkom showing signs that the top could be in for now.. $JSETKG

Telkom has once again bumped up into its trend line resistance which has formed highs in the stock on two previous occasions. The stock has been a strong outperformer in its sector and one wonders whether it has not possibly run too hard in the context of a weak economic backdrop locally. What is interesting to note is that the top in 2015 formed in early April. The following top in 2017 happened just over 24 months later (2 years). 2 years on and we are busy possibly forming the next top. 3rd time lucky? Well.. the RSI indicator has formed bearish divergence on the weekly chart where the RSI has made a lower high, not confirmed by price which went higher. This is typically a warning of a correction to come in the stock. My first target will be the 23.6% fib retracement at R70.00. If the stock stays weak we could see the next fib targets of 66.00 and 61.50 come into play..

Comment:

Price has responded well off the channel resistance but this will take some more time given the longer weekly time frame