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 rebound.
During yesterday’s session we saw the RSI hit a very oversold level of 23 while this morning, along with a slightly firmer price, the RSI is attempting a move out of oversold levels with a print of 29 in early trade. Taking a short term view and at a price of 7740c, the share may be worth a buy.
This is what traders could look to do:
Buy TKG at 7740 (or better)
Should we see the price go against us, use a stop-loss of 75.10
Take Profit at or close to 8180c
Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Unum Trading Desk Analyst
Tel: 011 384 2920