SAPPI looking shap! Target potential to R56.76Symmetrical Triangle seems to have formed on Sappi.
Now on the contrary of a Symmetrical Triangle being a Continuation pattern, it is possible for a reversal to take place in this instance.
We have the converging of the trendlines where the price has reached an apex. Strong buy divergences and price action to the up.
It's a bit premature to BUY just yet but I anticipate a breakour to the upside.
Then full steam ahead.
Other peripheral indicators confirm upside:
7>21>200
RSI>50 (Buy divergence)
Target R56.76
Jsesap
TIMBER! For Sappi to R20.00 due to Short Formed MShort Formed M Formation is evident.
This is a normal Double Top but the second one has a lower high than the previous.
This indicates even stronger selling pressure for the company.
With it broken below the neckline, the next price level it can go to is at least R20.000
Other indicators confirm:
21>7 (Bearish)
Price<200 - Bearish
RSI<50 (Lower highs)
Target R20.00
ABOUT THE COMPANY
Sappi Limited, originally known as South African Pulp and Paper Industries, is a multinational company specializing in wood pulp, paper, and paper-related products.
Inception:
Sappi was founded in 1936 and started operations as a pulp and paper company.
Headquarters:
The company is headquartered in Johannesburg, South Africa.
Global Presence:
Sappi operates manufacturing operations across three continents: North America, Europe, and Southern Africa.
Stock Listing:
The company is listed on the Johannesburg Stock Exchange, with secondary listings on the New York and London stock exchanges.
Primary Business:
Sappi is one of the world's largest manufacturers of dissolving wood pulp, a material used in a wide variety of products, including textiles, and packaging materials.
Paper Production:
The company is a leading global producer of printing and writing papers.
Product Range:
Beyond pulp and paper, Sappi also produces packaging and specialty papers, casting and release papers, and biomaterials.
Employment:
Sappi employs over 12,000 people globally.
TRADE UPDATE Sappi breakdown with a markup before drop to R40.60Symmetrical Triangle formed on Sappi.
Broke below and has been coming down nicely.
200>21>7 - Bearish
RSI<50- Bearish
We recently had a markup phase which is where the orders are being filled from the recent drop. We need to retest the high (resistance) and price should come down. If it breaks above, it will be wise to place a stop loss and lock in profits as the trend will have turned up.
Right now, still bearish with a target to R40.60
Sappi showing strong downside to R42.39 thanks to a TriangleSymmetrical Triangle formed on Sappi.
This is where a pattern moves neither up or down just sideways.
We then had a break down, which confirmed the trend direction.
200>21>7 - Bearish
RSI<30 - Bearish
Target R42.39
INTERESTING FACTS
Sappi Limited is a South African pulp and paper company founded in 1936.
The company has operations in over 40 countries across the world.
Sappi produces a variety of products, including printing paper, packaging paper, and speciality paper.
The company is the world's largest producer of dissolving wood pulp, a key ingredient in the production of rayon and other textiles.
Sappi is also a leading producer of graphic paper, which is used for printing magazines, brochures, and catalogs.
It's also traded on the NYSE!
JSE:SAP Sappi High Volume (Effort) without ResponseAfter distribution, Sappi was being marked down. However, we are seeing very high volume that has been increasing and this week the highest volume was recorded. In spite of this high volume, the price has been trading in a very narrow range around the key R40 level. It seems that large interest buyers have stepped in and a break of the narrow trading range could result in a significant move.
JSE:SAP SAPPI Markdown ContinuesI have been following the distribution of Sappi since November 2018 (See post and updates below). Currently, the markdown is actively playing out and following an established downward stride. We have had a small redistribution area but the price is again pushing lower.
JSE:SAP: Sappi is Being DistributedSAP has been in a trading range after a Buying Climax (BC) in May 2017. It looks like a Wyckoff Distribution is taking place. There is increased volatility and volume on the declines and low volume on the up moves. The declines has been larger and quicker than any of the declines in the uptrend leading to the BC . Increase volume is seen mostly at the top of the trading range. We could already be in the mark down in Phase D but will have to see how the range develops further. If this is Phase D we should see the start of the mark down soon.