Strong Rand over the last 2 trading sessions helping push banking stocks.
ABG is attempting to break to the upside of a falling wedge pattern.
We might see a re-test of 2019 highs above R188.
Absa Group showing positive momentum after testing the R 140.00 support followed by consolidation around the R 160.00.. This reaffirms a move towards R 200.00 over the medium term.. Look to accumulate around the R 170.00- R 172.00 levels.
Absa Group has recently had a solid run, supported by a stronger South African Rand. Now we are seeing the share price run into short term horizontal and channel resistance levels, one that may halt it's advance. The RSI is the most overbought since February 2018 and recently traded above the 70 level while the stochastic indicator prints in a distribution zone....
We have entered a long position on JSE:ABG because of a bullish ngulfing pattern tht has formed.
Although there is not much history on this instrument, it is also at a support level which solidifies the signal.
JSE:ABG has been trading in a channel between R170 and R146.50.
It is currently heading to the support zone at the bottom of the channel, and we expect a bounce and a move upwards towards the top of the channel.
The stochastic is confirming this as it heads to oversold territory with the expectation of turning up.
