- Price is up against previous support / now resistance
- TP & SL on chart
- MANAGE YOUR RISK -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:SAP has been trading in a downward channel for quite a while and has reached the bottom of the channel and seems to be bouncing off. We can expect a short upward move towards the top of the channel. This is also being confirmed by the stochastic.
Sappi broke a defined channel to the upside last week, followed by a fake out and break back into the channel. It is important to take notice of fake outs like this because it usually results in a selloff as a result of trapped longs positions. People buy the breakout in anticipation of a good move upwards (many times with leveraged positions) and when the share...
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.
Using the RSI to calculate bullish/bearish divergence conditions over multiple time frames (daily, weekly, monthly).
Divergence period used is 8 periods (Fibonacci number).
Bullish divergence is when the price is making lower lows, while the indicator (RSI) is making higher lows.
Indicates underlying strengths. Bears are exhausted. Warning of a possible trend...
We may derive the following from the Monthly SAP chart:
1. Price has been stuck in a major bearish trend.
2. A long term support level is approaching.
3. A bid is most likely to occur at the demand level (purple box).
4. Monitor price action and watch for further buying potential.
5. As always - maintain your risk.
Note: The views provided herein do not...
JSE:SAP has currently broken through a previous support level as well as a fractal level. If this is confirmed by a close above this level, we can possibly be looking at an upward move.
Sappi Limited is a woodfiber company focused on providing graphic/printing papers, packaging and specialty papers, dissolving wood pulp (DWP), as well as products in adjacent fields, including nanocellulose and lignosulfonate. The Company's segments include North America, Europe and Southern Africa. Its range of graphic paper products is used by printers in the production of books, brochures, magazines, catalogues, direct mail and various other print applications; packaging and specialty papers are used in the manufacture of such products as soup sachets, carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, tissue wadding for household tissue products and casting release papers used by suppliers to the fashion, textiles, automobile and household industries, and DWP products are used around the world by converters to create viscose fiber for clothing and textiles, pharmaceutical products, as well as a range of consumer and household products.
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SAP
