- Wait for candle to close to confirm short entry. - SL will be above the high
JSE:SAP has currently broken through a previous support level as well as a fractal level. If this is confirmed by a close above this level, we can possibly be looking at an upward move.
JSE:SAP formed a bullish harami off of a descending support line which also coincides with a support level from early 2015. It is looking very promising for an upward move.
JSE:SAP formed a bearish engulfing candle pattern yesterday which could signal a reversal. This seems to be whats happening at the moment. For the lat couple of months it has been making lower lows quit regularly. If the price breaks through the latest lower low from the 16th of Jan, I will consider entering a short position.
Interesting observation on Sappi (SAP.JSE). The bottom of the range coincides (almost) with the 200 day moving average. Becomes a STRONG buy at R80.00. buying here makes it easy to place your stop loss as a breach of the 200 day moving average would signal a bearish break lower. Take profit level is the top of the sideways channel.
Sappi (SAP) chart from Lester Davids, Unum Capital Trading Desk analyst. Daily Chart: Now at resistance and looking slightly stretch. Weekly: Building an Inverse H&S