Mining stock Sibanye has a significantly higher target having broken out of a large, bullish chart pattern, as shown on its chart below.
SIBANYE (SGL) – Higher targets
Recommendation: HOLD/BUY IF NOT YET IN
Current Trend: Up on all main timeframes.
Strategy: It remains an ongoing hold; buy if not in, and add to it on any pullback.
Chart Setup: Updating Sibanye’s chart, it’s progressing very well, having broken out above its neckline of a massive inverse head and shoulders pattern.
- Its weekly Stochastic is in its overbought zone, so there could be a temporary pullback soon, but all weakness is to be bought.
Strategy Details: Hold. Buy some now if not in, and add to it on a pullback e.g. to R19 or lower, if it pulls back.
Target: Its short-term target is R26.85 based on its recent correction (March – May). But its main target shows ongoing potential to R48 over the med-term+ . This is based on the height of its large inverse head and shoulders, projected up.
Stop-loss: Medium-term stop a weekly (i.e. Friday) close below R15.50.
- Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za
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