$JSECML Between A Rock And A Hard Place
Time for a relook at the Monthly chart of Coronation Fund Managers Ltd, after I identified what looks like a falling wedge about two months ago. A guru in the financial world described JSECML as a good proxy for SA Inc some time ago, but while the SA TOP 40 for example has not made much headway over the past 5 - 6 years, this counter has undeniably been in reverse over that time, being responsible for some serious losses for long term investors.
I will not boast about any Elliott Wave capabilities, but I managed to find four waves so far, with three sub waves each, so currently the falling wedge looks pretty much like those from the textbooks to me, and I find it difficult to see why a fifth wave down could not be a distinct possibility. I have been unashamedly bearish for almost a year already, and have this week expressed that a significant world wide correction is in my view now right in front of us. If Coronation has now indeed started with Wave 5 down, a drop to the lower line of the wedge, or even beneath it with a typical over throw that often accompanies a wedge, this means that the price could go from the current R49-02 to below R20, which would be a fall of at least 60%.
I will not boast about any Elliott Wave capabilities, but I managed to find four waves so far, with three sub waves each, so currently the falling wedge looks pretty much like those from the textbooks to me, and I find it difficult to see why a fifth wave down could not be a distinct possibility. I have been unashamedly bearish for almost a year already, and have this week expressed that a significant world wide correction is in my view now right in front of us. If Coronation has now indeed started with Wave 5 down, a drop to the lower line of the wedge, or even beneath it with a typical over throw that often accompanies a wedge, this means that the price could go from the current R49-02 to below R20, which would be a fall of at least 60%.
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