If the trend is your friend...

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If the trend is your friend, you should be looking to get short Life Healthcare (LHC). This is a very large trend and is therefore more significant. The problem is the RSI. Momentum has been extremely strong so I would short on weakness and NOT into strength. A break of this trend will be powerful and long lasting. A break and consecutive closes above 27.70 can be bought so if you do short this, your stop loss should be around this level. Otherwise, enter short if 26.00 does not hold, for a target of 21.40/21.70

On the long side, the 200 day moving average is at 27.70 so a breach of that simply has to be bought for at least R9.00 upside

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