Absa – Triple screen chart analysis

Monthly chart Analysis

The stock broke back above the R130 support. May with a close above the 50 month Exponential Moving Average. There’s a good chance the stock will run up to the R198 resistance. This trade could take up to a year to play out.

Weekly chart analysis

We have had a Cup and handle pattern breakout. Last week (24 May 2021 ) the stock closed through the 200 week Exponential Moving Average. After breaking, testing and holding firm above the 50 week Exponential Moving Average.

Daily chart analysis

The stock found some support at R144 from September 2019, which was subsequently broken, retested and and held as resistance during the “COVID-19 crash”

The stock is back to this level now. Finding some resistance at R144. A close above R144.30 provides a good long entry. The stock’s price action looks quite strong.

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