Colin Abrams
FOOD stock Tiger Brands is building up for a good rally after consolidating since November. We show two upside targets for it, based on its chart.
Tiger Brands– Upside breakout.
Recommendation: Buy.
Trend: Short term sideways. Medium and long term up.
(Daily)
n Tiger Brands has been consolidating the past two months in a descending triangle (lines 1 and 2). Last week it broke out above line 2, which is a positive sign. The recent lows at line 1 have also formed a “double bottom” pattern (bullish).
n At current levels continued upside is expected.
n The first target is R404, that is, the height of the triangle projected up. Take half trading profits there.
Then Target 2 is at R416, measured as the height of the recent double bottom projected up.
n The stop-loss is a closing price below R360.
From R398 bring your stop up to a close below R372, and take profits as advised above.
Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend his courses, please go to www.themarket.co.za