Plain and simple...the price has bumped its head at this level SIX TIMES now. I am counting on it happening again. Upward momentum is slowing and there is negative divergence creeping in on the RSI now. I'm looking to get short just above R69.00 for a 10% move lower... let's see what happens...
Firstrand has traded in a range between R60.00 and R70.00 for almost a year now. Only on a few occasions has it broken out of this sideways channel and, even then, only for a short while.
But, if you look at the MACD, you would notice a bullish divergence has formed. As FSR's share price kept retracing to R60.00, the MACD continued to make higher lows.
Bullish kumo breakout on the D1, all ichimoku bullish conditions met (Golden TK cross, green (bullish) Kumo breakout, lagging span above price, clean break through Chikou span A & B. Same conditions met last on 4th December 2017, leading to a 38.24% surge to the ATH of 7725.
Bullish kumo breakout on the D1, all ichimoku bullish conditions met (Golden TK cross, green (bullish) Kumo breakout, lagging span above price, clean break through Chikou span A & B. Similar conditions met last on 4th December 2017, leading to a 38.24% surge to the ATH of 7725.
VPVR shows price has moved above, suggesting area high volume activity will form a strong base.
After creating a high of R77.25, Firstrand dropped to R55.00 before bouncing back up to just above R70.00 a share. Since then it's traded sideways. It seems to have found resistance in the area between R72.00 and R69.00 while support kicked in somewhere between R62.00 and R59.00.
Over the past few days, the price reached the lower end of the resistance range and...
Firstrand has building a solid base around the R 60.00 /R 62.00 levels over the medium term.
I'm of the view we may see a short term pull back towards the R 62.00 /R 64.00 levels just as a final test to shake the tree...followed by a rally beyond the R 76.00 levels.
Patient money should keep a close eye on this one!