Impala Platinum - Long Term CautionOne of the shares I will be highlighting in the upcoming week's research note(s):
- Long Term Holders: Caution; Test of Prior Multi-Year Breakdown Level and Fibonacci extension.
- Reviewing the monthly chart, it’s important to note the share trading at it’s prior multi-year peak, with the currently pullback being in line with the same breakdown level of July 2008.
- This level also coincides with the 4.236 Fibonacci extension.
- Also note the bearish divergence as per the monthly chart.
- As noted in our prior research note dated 23/03 at R2115, it’s peer Anglo American Platinum traded at a multi-year peak, created an opportunity for long term holder to reduce their positions at attractive levels. As of Friday’s close AMS traded R345 lower to R1770.
- As they say: ‘Sell when you can, not when you’re forced to!’
