Thungela Resources to continue its rally post dividends?
The market seemingly factored in the Earnings data and with news of new business acquisitions and dividend declaration, price rallied to break resistance at R143.50, breaking also the descending triangle pattern's falling trendline and closing well above the 50 DAY EMA. Clearly the Bulls have decided to launch this rocket much earlier.
Considering the most recent price action, price is forecasted to trade and hold well above R143.50, heading to the R160 ~ R166.00 resistance zone. Factoring in the dividend payout period, price is set to give a reaction at this resistance level, which will also coincide with price approaching the 50 WEEK EMA.
"Bullish continuation"consolidation around this area will be a good signal to add onto long positions, whereas a STRONG bearish reaction could see price plummet to levels below R100 over the short term to fullfill the Technical Analysis 101 principle of 'price moving the length of the head in the opposite direction upon the downward break of the Head & Shoulders pattern' for an even better reversal.
Considering the most recent price action, price is forecasted to trade and hold well above R143.50, heading to the R160 ~ R166.00 resistance zone. Factoring in the dividend payout period, price is set to give a reaction at this resistance level, which will also coincide with price approaching the 50 WEEK EMA.
"Bullish continuation"consolidation around this area will be a good signal to add onto long positions, whereas a STRONG bearish reaction could see price plummet to levels below R100 over the short term to fullfill the Technical Analysis 101 principle of 'price moving the length of the head in the opposite direction upon the downward break of the Head & Shoulders pattern' for an even better reversal.