Sanlam Sanlam | From a long term portfolio perspective, the share price of Sanlam appears lacklustre while also being motivated by a few technical indicators. A review of the monthly chart sees the price trading at the same level it did 6 years ago, for the most part being supported by it’s 50-month moving average (MA). This MA has been tested on numerous occasions throughout the period, having held on each occasion which brings to mind the phrase ‘persistance breaks resistance’ meaning that the more times the price tested the MA the greater the likelihood that the price breaches this level and proceeds to slip below it. It should also be noted that the Relative Strength Index (RSI) suggests that the share current trades in a bearish regime with a print below the 50 level while the MACD (Line and Signal), which has been above the centre line since July 2009, is now nearing the centre line with potential to cross below zero. These factors, along with a potential breakdown of an 18-month trend line support, suggest that long term holders of the share may want to consider reducing positions on the back of moderate technical warning signs.
