Long Top5 oversold/overbought according to RSI & $JSEKIO

End of week 5Apr19. When last did we see #Coronation in top overbought list? FTSE/JSE Allshare Top5 oversold/overbought according to 14day RSI indicator as follow:

Fortress B 22
Omnia 23
MIX Tel 25
Nampak 27
Afrox 28

Alex Forbes 77
Naspers 74
Coronation 73
Kumba 71
African Rainbow Min 69

Spending a bit of time on Kumba. Nice recovery that started in January 2016, which saw the company move from R24 to the R450 recent levels (yep, that is close to 1800% in 3 years). The share however find itself at heavily “overbought” levels now, with a possible pullback that could be aggressive if found on the wrong side.

If I was long in $JSEKIO, I would set my stop-loss at the 0.786 Fibonacci retracement support level at R418. A break through these levels could see the share most probably try and test the 50-day moving average at R376.40.

According to Thomson Reuters consensus forecasts, analysts got a SELL on the company and see possible downside of -34% in the share price (expected one year forward) – Target price of R292.78, which is also more or less at the current 200-day moving average.