Telkom Down channel to R15.00 nextDownward Channel has formed on Telkom.
The price continues to make lower highs and lower lows. We can only go with the trend as long as it continues.
So my bias is bearish as there are other momentum indicators confirming downside to come.
200>21>7
RSI<50
Target R15.00
ABOUT THE COMPANY
Telkom SA SOC Ltd. is a leading telecommunications company in South Africa, offering a range of services to both individual and corporate clients.
It was founded in October 1991 when South African telecommunications was deregulated.
Telkom operates in more than 38 countries across the African continent, making it one of the largest telecommunications corporations on the continent.
Telkom offers a broad range of services, including fixed-line telephone, mobile, broadband and fiber optic internet, digital television, and IT services.
Telkom Mobile, formerly known as 8ta, was launched as Telkom's mobile service brand in 2010.
The company has made significant investments in upgrading its network infrastructure to support advanced technologies like 4G and 5G.
Telkom has played a key role in South Africa's broadband expansion efforts, including the rollout of fiber optic networks to homes and businesses.
In 2017, Telkom introduced Telkom LIT, a digital entertainment platform offering video and music streaming services.
It has partnered with other technology and telecommunications companies on various projects. For example, it announced a roaming agreement with Vodacom in 2018.
Jsetkg
TARGET surpassed Telkom and more downside to comeInv Cup & Handle formed on Telkom.
We then had a break down and the market has been coming down ever since.
200>21 >7 - Bearish
RSI<50
The first target was at R28.63. But the market gapped and opened at R26.00.
This means the price got out at a better price for the short.
The bias is still bearish and we can expect further downside.
I'll let you know in due course.
UPDATE: Thungela still showing strong downside to R88.70Large H&S cine May 2022
This is one of those medium investment trades, that you need to hold for a LONG period of time.
Luckily with CFDs, when you short stocks you gain interest, so it doesn't matter how long you hold.
The longer the better.
Any way, the price broke below
200 >21> 7 - Bearish (Red)
RSI <50 Red
Target remains at R88.70
Inv C and H on Telkom and strong downside to come to R28 - SMC Inv Cup & Handle formed and broke below the brim level.
200>21 >7 - Bearish
RSI<50
Target R28.63
Bearish bias
We had a BOS up twice before, we had a Change of Character. This means, we go our trend reversal on the bigger time frame, showing downside to come.
This works with the INv Cup and Handle
and because the Daily Bias on the JSE is bearish all confirms strong probability of downside.
Telkom showing signs that the top could be in for now.. $JSETKGTelkom has once again bumped up into its trend line resistance which has formed highs in the stock on two previous occasions. The stock has been a strong outperformer in its sector and one wonders whether it has not possibly run too hard in the context of a weak economic backdrop locally. What is interesting to note is that the top in 2015 formed in early April. The following top in 2017 happened just over 24 months later (2 years). 2 years on and we are busy possibly forming the next top. 3rd time lucky? Well.. the RSI indicator has formed bearish divergence on the weekly chart where the RSI has made a lower high, not confirmed by price which went higher. This is typically a warning of a correction to come in the stock. My first target will be the 23.6% fib retracement at R70.00. If the stock stays weak we could see the next fib targets of 66.00 and 61.50 come into play..
3 good reasons to short $JSETKG#Telkom might be running into some tough resistances after a long uptrend earlier this year.
- Retest of long term trend-line
- Bear flag forming
- Last but not least, .618 fib retracement level reached
All 3 these reasons are sitting at the same point.
Maybe a last effort or bull trap waiting, but I expect a drop
JSE:TKG Telkom Great Wykoff StudyIt is not a good time to buy Telkom but it makes a good study of the Wyckoff principles. The first thing to notice is the pattern: Markdown - Accumulation - Markup - Distribution - Markdown - Accumulation - Markup and now potentially forming a range again. The next notice the two ways that markups and markdowns en: 1) The first Markup and Markdown ended by an inability to move to the oversold or overbought trend line, 2) The second two had over throws of the lines. Both these setup resulted in a trading range forming. The next thing is to notice how the trading range forms. Only the main labels are added to have less clutter. Volume increases on the Preliminary Supply (PSY) or Support (PS) and it is possible to even be the highest volume for the range as is the case in the Distribution Range. Next a Selling (SC) or Buying (BC) Climax is formed on volume stopping the trend (Phase A). After a Aromatic Rally (AR) or Automatic Reaction (AR) (Still Phase A) a period of low volume in the TR forms where the Composite Operator (CO) is carefully either Distribution or Accumulating stock (Phase B). Once this is done the TR ends in a Spring; Upthrust after Distribution (UTAD) or Last Point of Supply (LPSY) / Support (LPS) Before breaking the TR (Phase C). Once it has been marked out of the TR a backup to the trading range first takes place (Phase D) before the Markup or Markdown can begin (Phase E). Also notice how the Volume RSI can assist in providing a clue if an accumulation or distribution is forming.