The share price of Telkom has breached the neckline of large head and shoulder technical formation. Typically, a break is followed by a re-test of the neckline or breakdown level and/or major moving average such as a the EMA20 and SMA50. At current levels, the price is finding support on it's 200-day moving average and may be a worth buy for a short term rebound. During yesterday's session we saw the RSI hit a very oversold level of 23 while this morning, along with a slightly firmer price, the RSI is attempting a move out of oversold levels with a print of 29 in early trade. Taking a short term view and at a price of 7740c, the share may be worth a buy.
This is what traders could look to do:
Buy TKG at 7740 (or better) Should we see the price go against us, use a stop-loss of 75.10 Take Profit at or close to 8180c