Symmetrical Triangle seems to have formed on Sappi.
Now on the contrary of a Symmetrical Triangle being a Continuation pattern, it is possible for a reversal to take place in this instance.
We have the converging of the trendlines where the price has reached an apex. Strong buy divergences and price action to the up.
It's a bit premature to BUY just yet but...
Short Formed M Formation is evident.
This is a normal Double Top but the second one has a lower high than the previous.
This indicates even stronger selling pressure for the company.
With it broken below the neckline, the next price level it can go to is at least R20.000
Other indicators confirm:
21>7 (Bearish)
Price<200 - Bearish
RSI<50 (Lower...
Symmetrical Triangle formed on Sappi.
Broke below and has been coming down nicely.
200>21>7 - Bearish
RSI<50- Bearish
We recently had a markup phase which is where the orders are being filled from the recent drop. We need to retest the high (resistance) and price should come down. If it breaks above, it will be wise to place a stop loss and lock in profits as...
Symmetrical Triangle formed on Sappi.
This is where a pattern moves neither up or down just sideways.
We then had a break down, which confirmed the trend direction.
200>21>7 - Bearish
RSI<30 - Bearish
Target R42.39
INTERESTING FACTS
Sappi Limited is a South African pulp and paper company founded in 1936.
The company has operations in over 40 countries across...
We formed a possible Head & shoulders here . a Daily close below R 40 might be the trigger here for Possible R35 1TP and R32 as a 2nd TP. be mind full that should this fail to break and a break of last week's high this will mitigate the idea and stay with the current range.
After distribution, Sappi was being marked down. However, we are seeing very high volume that has been increasing and this week the highest volume was recorded. In spite of this high volume, the price has been trading in a very narrow range around the key R40 level. It seems that large interest buyers have stepped in and a break of the narrow trading range could...
The markdown of Sappi has taken a pause but is set to continue. Some volume and negative divergence on the volume RSI points to a continuation of the downward stride.
I have been following the distribution of Sappi since November 2018 (See post and updates below). Currently, the markdown is actively playing out and following an established downward stride. We have had a small redistribution area but the price is again pushing lower.
SAP has been in a trading range after a Buying Climax (BC) in May 2017. It looks like a Wyckoff Distribution is taking place. There is increased volatility and volume on the declines and low volume on the up moves. The declines has been larger and quicker than any of the declines in the uptrend leading to the BC . Increase volume is seen mostly at the top of the...
