An Initial Buy Signal (IBS) manifested on 28 August (2596 cents) when the price broke through both the EMA20 and the medium-term resistance trendline formed since May, for 2 consecutive bars.
We have been watching the share with interest since the short-term bull run began on 5th August and it seems the 3-month bear run initiated on 26 May is finally coming to an end.
We are looking for a 1st confirmation signal when the price remains above the EMA20 and resistance line for another 2 consecutive bars. Our 2nd confirmation will be 2 trading bars above the SMA50 or when the EMA20 crosses the SMA50.
You should get ready to buy your first tranch of shares now (see Trading Strategy) as the share is likely to take a breather on Monday (US and UK markets closed) and you could pick it up for R25.30-R25.50 once we issue a 1st confirmation.
The shortest bullish period we have measured on STX40 with our system in the last 6 years is 100 days so hopefully this run will be at least that. We expect a target of R30.00 for this bull period.
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