This chart forms part of a larger research note. None of the information posted here (TV) should be considered financial advice.
IMP was one of a few shares that recently breached their incline support following a sharp run-up. As we’ve seen previously (for e.g. DRD Gold and Sasol), a break of the incline is not necessarily an immediate sell signal, but rather an opportunity to wait for a pullback for re-entry to ride the potentially sharp back-test. As at Friday’s close, the ‘buy/long’ risk-to-reward remained unattractive with a downside bias. Remember the share is up from 4500c in March (buy/long recommendation at 5200c on 18 March) to 13500c last week, and if you know me by know, you’ll know that I’m not in favour of chasing after a massive run-up. So where would I be interested on the long side? The 9800c to 10000c level has proven to be a zone that attracted buyers in the past, and if history is anything to go by, may prove to be the case once again. On the chart you’ll notice my price action scenario (annotations in red and green). Provisional levels are as follows: Accumulation 9750c – 9900c. Should the price move against us, a stop-loss of 9300c is recommended. Take Profit Target: 11800c-12200c.
IMP was one of a few shares that recently breached their incline support following a sharp run-up. As we’ve seen previously (for e.g. DRD Gold and Sasol), a break of the incline is not necessarily an immediate sell signal, but rather an opportunity to wait for a pullback for re-entry to ride the potentially sharp back-test. As at Friday’s close, the ‘buy/long’ risk-to-reward remained unattractive with a downside bias. Remember the share is up from 4500c in March (buy/long recommendation at 5200c on 18 March) to 13500c last week, and if you know me by know, you’ll know that I’m not in favour of chasing after a massive run-up. So where would I be interested on the long side? The 9800c to 10000c level has proven to be a zone that attracted buyers in the past, and if history is anything to go by, may prove to be the case once again. On the chart you’ll notice my price action scenario (annotations in red and green). Provisional levels are as follows: Accumulation 9750c – 9900c. Should the price move against us, a stop-loss of 9300c is recommended. Take Profit Target: 11800c-12200c.