JSE:TCP is proof that the market will do what the market wants to do. The stock tumbled from its highs of R52.50 in April 2022 after a beautiful rally that started in March 2020 from the lows of R8.96.
Looking at the current price action after a huge sell off, the stock found support at R5.45 and began making an ascending triangle with resistance at R7.16. This resistance was broken on 5th September and retested with a hammer candle the following session ,and we had a bullish crossover of the 8 Day EMA and 50 Day EMA.The share reached R7.72 yesterday the 7th of September and we had some profit taking which saw the day closing at R7.37.
As long as the R7.16 level holds as support, we could see price creep to R8.23 where it may find resistance and start consolidating before an attempt to trade above R8.52 while targeting R14.25. Considering that there is a market gap between R20.90 and R28.00 the bulls could be sharpering their horns to close this window, a potential of over 200% gains from the current levels of R7.37.
Short to medium term sentiments are strongly bullish above R7.16 and long term above R8.52. conservative trailing stops recommended as price breaks resistances to the upside.