Coronation

This is my kind of Dip to buy

We have an inverse head and shoulder pattern. The right shoulder holding the 50 month EMA. If the stock is to have a go at the R115 highs these levels are about where levels provide an interesting 5.9 risk:reward long term opportunity. If the stock takes out the R55 neckline. With a long term stop loss at around R45. This is mildly interesting let’s have a look.

The weekly chart

Tug of war between buyers and sellers at around the 50 and 200 week EMAs. 50 week EMA quite close from triggering a golding cross.

Let’s look at the daily chart to see who’s winning

The stock broke out of the “war’s” range with a bullish engulfing candle. Engulfing pretty much the entire range. Closing back above the 50 day EMA. On Monday 30 August 2021 Good time to start building a position with an anticipation of the head and shoulders trade. That provides a better risk reward opportunity of about 16. If the stock then closes above R55 then continue building the position.

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