Johannesburg - After underperforming for many years, Standard Bank’s share price is now moving, having given a significant breakout recently. We show two upside targets for it.
Standard Bank: Higher levels to come
Trend: Up on all main timeframes,
Strategy: Buy on the current pullback.
- Standard Bank broke out of a massive ascending triangle (lines 1 and 2) a few weeks ago. This was significant because line 2 resistance goes back six years (to 2007). It also formed an inverse head and shoulders (as labelled), with a breakout in mid-September.
- Its short-term stochastic oscillator is pulling back to a relatively oversold level after a pullback last week.
- Continue to hold from our recent recommendation. If not in already, buy it on the current minor pullback, ideally near R124.
- Target 1 is R130.90, based on the height of the inverse head and shoulders projected up. Target 2 (medium-term) is R143.40 based on the size of the large triangle projected up.
- Short-term stop for traders is a close below R122.20. Medium-term the stop is a close below line 3 (R118.80).
* Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend his courses, go to www.themarket.co.za.