SANLAM LIMITEDLong
Sanlam - (SLM) Near Long-term Support
Updated
Sanlam has a beautiful down channel which has another channel within the bigger channel. The share is seeking a yearly low price. The area it is approaching has a confluence of support where downtrend was halted before as shown by horizontal black lines. How to approach the trade:
1. Watch for price to make a swing low (on daily chart), watching to see reaction where inner channel support meets horizontal support (black lines)
2. Once swing low is confirmed, open a long position or use reaction off support to get in early
3. If risk averse open 50% position & buy the rest when price closes above the blue resistance on a weekly basis
4. If price continues down to COVID lows the 50% remaining can be deployed when price arrives there
5. We would want to hold until test of recent highs which is some 50% up move.
1. Watch for price to make a swing low (on daily chart), watching to see reaction where inner channel support meets horizontal support (black lines)
2. Once swing low is confirmed, open a long position or use reaction off support to get in early
3. If risk averse open 50% position & buy the rest when price closes above the blue resistance on a weekly basis
4. If price continues down to COVID lows the 50% remaining can be deployed when price arrives there
5. We would want to hold until test of recent highs which is some 50% up move.
Note
With AngloAmerican (AGL), a proxy for JSE Top 40 confirming a bearish cycle, one might want to take partial profit on SLM to deploy later in case it follows the market down.Note
SLM appears to be angling towards making December 2022 the yearly cycle low, the ambiguity is on the daily cycle that is failed. We therefore await a weekly cycle low point to deploy that which had been sold in last week of February.Trade closed: target reached
The daily cycle shows trend exhaustion & an ambiguous cycle, booking all profits here would make sense.
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