What a difference a dividend makes!
The payment went out on the 15 April 2024, and because there are derivatives that traders can trade off - the algorithm droped the share price quite significantly.
I don't think this company should be providing such high dividends if it wants growth in the share price, but hey I'm just the guy behind a computer.
So last...
Merafe was easily set to great upside to R1.72
This was due to a Box Formation, Upside and Price above the moving averages.
But then 22 cents Dividend was given out which caused the share price to drop quite quickly.
So is the analysis still on? I guess it is as long as it hasn't hit the risk level.
But these are things to take into account and learn from.
Rectangle formation has completed with Merafe.
There has been a strong bullish sense with the stock, where the price action has shot above the pattern and is showing upside and demand to come.
We are seeing other signs as well with optimism.
Price>20
Price>200
Target 1 will be at R1.72
We see Merafe has definitely entered into a Rectangle formation.
Price is remaining above the 200MA where it could range between the high and low.
We definitely need a breakout to the upside, before we see upside. The target potential will be at R1.61 if the price breaks above the Rectangle.
Now I wouldn't be that positive and optimistic with this analysis,...
Cup and Handle has formed on Merafe and once again it looks like it's going to head to the top of the channel yet again.
Also results have come out beating expectations by over 30%.
We have other indicators showing upward momentum including:
7>21
Price<200
RSI>50
Target R1.47
Cup and Handle formed with Merafe with the previous Breakaway gap that took place.
The price has broken above the Brim level and is flirting with the 200MA.
Also the price needs to move up to fill the gap.
These are all bullish signals including:
7>21
Price<200
RSI>50
Target 1 will be to R1.47
ABOUT THE COMPANY
Merafe Resources is a South African mining...
First, Merafe hit our target at R1.00.
This was due to a Box Formation which the price broke below. Also above the Box Range was Buy Side LIquidity, where Smart Monet came up and swept and sold into the levels.
This brought the price down and then some.
Inv Cup and Handle formed on Merafe. And the price has broken below the brim level.
Also the price is...
Range bounded has been the overall trend for Merafe.
It seems like there is just a fight between the bulls and the bears.
We can only assume the price is most likely to break up due to the previous momentum.
I will only wait for a break above or below the range before acting upon.
MAs are all close confirming the sideways movement.
SMC:
There needs to be a...
M Formation formed on Daily, which the price broke below.
21>7- Bearish
Price <200 - Bearish
RSI <50 lower highs
Target R1.08
SMC
Buy Side Liquidity Order Block formed which was at the top of the M Formation.
This is where Smart Money comes in and sweeps buying liquidity from buyers going long and shorters getting stopped.
M Formation formed on the daily
and we are just waiting for the price to break below the neckline.
21>7- Bearish
Price <200 - Bearish
RSI <50 lower highs
Target R1.08
CONCERNS:
Many resource companies are showing downside to come. It seems like smart money knows something the public doesn't. This corresponds to the strengthening dollar. Ever since the US...
The Cup and handle formed, broke above the Brim Level and now looks like it's heading on up.
The price above the 200MA is the first time since Sep 2022...
Target 1 at R145.
Target 2 R1.66
ABOUT
Merafe Resources is a mining giant company that was founded in 2005 and is based in Johannesburg, South Africa.
The company's primary focus is on the production of...
New Cup and handle has formed on Merafe as well as a strong uptrend channel.
Target 1 at R145. Target 2 R1.66
Price is about to cross above the 200MA as it is preparing for upside.
Bullish bias but will need the price to break above the 200MA before any action to be taken.
New Cup and handle has formed on Merafe following the Old one in 2022
Target 1 at R145 and now a new target of R1.66
Price >200MA first time since Sep 2022
Some info on Merafe
Merafe Resources is a South African company that is primarily engaged in the mining and production of ferrochrome, which is an alloy of chrome and iron used in the production of stainless...
Cup and handle formed on Merafe. This is a short /medium term trade.
We can see the gap down is likely and ready to close.
The first price target will be at 200MA to R1.45
We also have the resource sector dominating the JSE All Share Index. AGL, ANG, HAR, EXX, KIO all looking bullish, which will help push up the Ferrochrome price along with the metals.
JSE:MRF
Looking for a second long entry, first was at R0.33
We could see a retracement back down to about R0.36 level and then hoping for a move to the upside
Always remember to scale out your positions and move stop loss to break-even after reaching initial targets
