#ARI is African rainbow headed for further weakness?

12 Feb

I hate to be the bearer of bad news but if we close below R169.00 on a closing basis I think African Rainbow could well trade much lower to a target of approximately R136.00. Not only is it currently losing a very important level of uptrend support but the R169.00 level has been an important pivot of resistance and support previously. Although the Head & Shoulder presented is a bit shady as the horizontal neckline is not at the same level, i do feel like a break of R169 will see the stock under pressure. Notice how it's lost its 200dma once again (green line).