JSE:IMP Impala in Wide Trading Range
Updated
Impala has been weaker than the other sector stocks (Platinum & Precious Metals Index (J153)), for some time (see Comparative Relative Strength). However, recently the stock has shown strength and is the strongest stock in the sector. After a Selling Climax (SC) and Automatic Rally (AR) in 2016 there has been significant selling pressure (OBV) but price has not been able to break the SC lows. After a smaller Trading Range (TR), break out and backup (Flag on daily) we are potentially going to see a markup to the top of the TR at around 7000. However, the first target to watch is the Yearly Pivot Point which is also the Preliminary Support (PS) level at 4000 (Completion of the flag). There is some space in the TR for longer term trades.
Comment
Price has reached the top of the TR formed since 2016. It has formed what will most likely be the start of a smaller TR. We now need to see how this develops. There is negative divergence with the volume RSI potentially indicating supply in the market which could push the price down once the TR has completed.
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