KIOA slide from this morning's research note:
Kumba Iron Ore (KIO) | On Wednesday, the data suggested an ultra short term overbought rating, with a subsequent unwind to close the
session -4.40%. The 8-EMA has crossed above the 21-EMA (both of which are starting to rise). The share could re-test the 8 21-EMA range or
slightly below it at the prior breakout level at ~38200c to ~39000c.
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KIO trade ideas
KIO: further downside potential?A bearish trend is applicable below 53700. Crossing above this level will negate the negative stance.
The level 51300 acts as further bearish trend support.
Consolidation around 48900 to 52100. Crossing below 48900 will target 45700.
A break above 52100 will be the first sign of strength in the share.
Remains a risky trade.
KIOLooking at my model, yesterday's EOD/today's pre-market data for the share read as follows: "Near Overbought - Look for 1-3 days upside before a potential decline" . The R600-R610 zone has been of interest to me, that being the declining trend line (potential resistance) and the 61.8% FIB retracement. I think the market might try to attack this zone once again however at current levels, it appears extended to the upside with the candle structure (see current candle) suggesting possible exhaustion.
Yesterday's 7-DAY RSI was 74 (strong but near overbought).
Provisional Trading Levels:
Short R600-R610
Stop-loss R622
Target: R555
Current: R593