Momentum-shift for Sephaku Holdings signals buyers' interest. Sephaku Holdings Limited had a taste of gravity in April 2015 when it tumbled from highs of R10.22 and went headfirst to smell lows of 23c by June 2020. The stock consolidated to close the week of the 11th of October 2021 at R2.06.
From this point we saw interested buyers closing the coming weeks in a “cup and handle pattern”, effectively printing a higher swing low and closing higher than R2.06 in September 2024 at R2.64.
Price is currently in the handle of the pattern, trading in a steep flag above the 49 Week EMA, currently resting at R1.68.
After closing the week of 02 December 2024 at R1.94, we expected the stock to pullback and retest the R1.68 zone before moving higher and that was achieved now in Jan 2025.
Recommended BUY positions can be initiated by using limit orders, or waiting to see a bullish reaction at the 49 Week EMA.
Entry – R1.68
Stop Loss: R1.56
Target 1: R2.99
Target 2: R3.63
Target 3: R4.08
A Weekly close above R4.65 could see the stock reach R5.24 and R6.42.
Below R1.55 the stock will call sellers to have a party and may plumet to 38c.
