[miningmx.com] — THE JSE’s all-share index is still consolidating below the 200-day moving average.
It appears that the year’s low reached in March – 30,194 – is not far away.
The local market is oversold and could possibly again experience the short-term run it did earlier in the week.
Investors should remember that while the index is consolidating below the 200-day moving average, all run-ups should be regarded as sprints in a declining market.
ANGLOGOLD ASHANTI
The falling wedge on the daily graph of AngloGold Ashanti’s share price is beckoning speculators closer.
Speculative purchases can be considered at the R290 level and investors should use R279 as a stop-loss to protect capital.
A possible upward burst will increase in momentum if the share price closes above R292.
Likely upward targets are R300 and a short-term R308.
But investors would do better to wait for the share price to break upwards out of the wedge before taking chances.
Only very brave speculators will nibble on the share when it nears the bottom edge of R280.
ANGLO AMERICAN
In March 2011 readers were warned that the share price’s daily graph pointed to a dangerous head-and-shoulders formation, and a support level of R300 was flickering.
A support line is warning investors that this level is not far from being reached. A technical opportunity awaits close to R300/R305 (when the head-and-shoulders will play itself out).
Buy shares close to these levels and user a stop-loss of R290 to protect capital.
– Sake24.com
