The JSE’s share price seems to have formed a very defined trading range since the start of the year.
I am looking to trade this range which is also starting to show a trend that is rising ever-so-slightly.
The price has been languishing in over-sold territory for almost two weeks now however, the RSI seems to be starting to settle at this zone.
Yesterday’s “up-and-down” trading day has resulted in the formation of a spinning top candle stick which does signal “uncertainty” of the next price move. The fact that the price is now squeezing the bottom Bollinger band at 2.1 Standard deviations could well result in a relief rally back to the mean.
But the way this stock moves when it picks up momentum could easily push it back to the top in the coming weeks.
I have put my SMART trading copy trade clients in at this bottom support line of this year’s range. My stop loss will be a decent break below this line with a little breathing room.
Here’s the details of our trade:
Entered long JSE (CFD) at R182.64
Profit target R202.00
Stop loss placed at R175.00