JSE:TKG
- Price has retraced to the 0.618 level of the last move.
- Weekly trendline support / Stochastic oversold
- On watchlist, will wait for price action to confirm a long entry.
Pretty basic trade here and in the current market your strategy should be to buy the green stocks and sell the red ones...the Head and shoulders pattern on Telkom makes this a pretty easy short at the re-test of the neckline
We may derive the following from the Weekly TKG chart:
1. Price has broken below our major horizontal support.
2. Price should in all probability continue to drop further.
3. Monitor price action and look out for further short opportunities.
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
TKG has closed below resistance / supports levels opening below today will confirm
further downward movement.
i will wait for confirmation to increase position
i will put in tight stop loss
as always i will manage my risk
TKG has formed a head and shoulders pattern at the top of an UP trend on the WEEKLY chart. SUPPORT has been broken and now retested as RESISTANCE. Full TARGET for the pattern is R68.40
Telkom has been in a strong uptrend but after a buying climax (BC) on high volume and automatic reaction (AR) we have set the bounds for a trading range (TR). As it develops further we will be able to see if it a re-accumulation or distribution.
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...
TKG remains in the third-best sector based on rotational analysis. “What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” William O’Neil.
Improving technical scoring according to our proprietary scoring methodology, supporting a bullish bias.
A conflux of technical indicators supporting a bullish...
We may derive the following from the Weekly TKG chart:
1. Price has fallen as previously analysed (See linked idea).
2. Some profit can be taken.
3. A potential bid may occur at the support level (8300)
4. Keep holding.
5. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
