$JSENRP - NEPI Rockcastle: Buying The Long-Term Cycle
NEPI listed on the JSE on 12 Jul 2017 and after an initial post-IPO run, the share price experienced a strong selloff from it high of R211,14.
The first selloff into early 2018 was a clear and crisp impulse for wave (A).
What followed was sideways consolidation in a triangle pattern for wave (B).
During this consolidation, NEPI's financial reporting came under scrutiny from notorious short-sellers Viceroy Research in a publication in November 28, 2018.
March 2020 saw another strong selloff for wave (C) triggered by the covid-19 outbreak to bottom at R49,90.
This (ABC) pattern is a textbook zigzag pattern and suggest there is a high probability that R49,90 is a long-term bottom.
The price action from the March 2020 low is still in its early stages but looks impulsive.
In the short-term, i recommend R78,29 as a stop-loss level but in the long-term, as long as price remains above R49,90 I am bullish NEPI.
The first selloff into early 2018 was a clear and crisp impulse for wave (A).
What followed was sideways consolidation in a triangle pattern for wave (B).
During this consolidation, NEPI's financial reporting came under scrutiny from notorious short-sellers Viceroy Research in a publication in November 28, 2018.
March 2020 saw another strong selloff for wave (C) triggered by the covid-19 outbreak to bottom at R49,90.
This (ABC) pattern is a textbook zigzag pattern and suggest there is a high probability that R49,90 is a long-term bottom.
The price action from the March 2020 low is still in its early stages but looks impulsive.
In the short-term, i recommend R78,29 as a stop-loss level but in the long-term, as long as price remains above R49,90 I am bullish NEPI.
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