Thursday, March 31, 2011

Shoprite Weekly; Exxaro - 31 March 2011




The resistance line over the RSI negative divergence puts pressure on the momentum in the price action. The divergence warned us of the correction/sideways action to come. The sideways action took us to the trendline, which was confirmed as support.
We expect resistance on the price to break along with the break of resistance over the RSI to signal the start of a new trend with strong momentum.



Exxaro Resources broke out of the consolidation to make a new all-time high. It is short-term overbought so a pullback to 156 is buyable.

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