Absa: The Longer-Term View
Updated
Absa lost the support that sustained price from the COVID lows, now price is attempting to recover that line. At the same time we are expecting price to seek or confirm a yearly low, usually this happens when we have a failed weekly cycle, this has not happened so far. If price is rejected at re-entry attempt we can expect a swift move down to lower than R150.70.
On the other hand we would know the yearly low is confirmed if price closes above the declining resistance on a monthly basis or when we have reasonable confirmation a a likely close above that line. What gives the bearish thesis a higher probability is the RSI & TSI are showing negative divergence.
On the other hand we would know the yearly low is confirmed if price closes above the declining resistance on a monthly basis or when we have reasonable confirmation a a likely close above that line. What gives the bearish thesis a higher probability is the RSI & TSI are showing negative divergence.
Trade closed: target reached
Absa is attempting to reverse trend, best to take all profit from the short position.
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