Current: R182.46
Target: R279.66
Time for completion: 12 - 24 Months
Position Status: Active
We can see a flat pattern that has completed. B retraced between 90% and 100% of A. C has retraced 100% of B. On a lower timeframe we have an impulse and correction. This does not yet confirm long term upside. Two scenarios exist.
Scenario 1: long term upside commencing from this point onwards
We have an impulse and correction occurring after the long-term flat pattern has completed. The option of immediate long-term upside exists because the flat pattern is complete. Alternatively, there is scenario 2…
Scenario 2: Retest low, followed by long term upside
The impulse and correction on the lower timeframe may constitute a short term correction to test the low of C. Testing the low is a common feature of these patterns. If the low is broken, we will maintain our BUY position unless a corrective structure for further downside is identified.
Scenario 3: Retest low, followed by correction for downside
Alternatively, if the pattern we identified is not valid, we will see the price break the low of C, form a sideways corrective structure (which indicates that further downside is likely) followed by another strong move to the downside. If we see price break the low of C and form a sideways corrective structure, that would be our sign to close the position.
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