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Writer's picturePeet Serfontein

Analyst Thoughts - USD/ZAR Medium-Term

THE R/S TRIANGLE PATTERN APPEARS TO BE COMPLETE


  • Summary: The formation of the RS pattern appears to be complete following the anticipated decline and subsequent recovery from the S2*/K target zone.

  • Current Upside: There is potential that this marks the beginning of a 1,2,3,4,5 impulsive bull trend aiming for T1 and possibly further.

  • Outlook Confirmation: A breakout above the resistance R2* will confirm this bullish scenario.

  • Alternative View: Should the price fail to escape the RS triangle, it would indicate the onset of a more intricate consolidation stage oscillating between the resistance R3 and the support S2*.

  • Important Levels: The resistance R2* is critical as it confirms the expected upward movement. Conversely, the support S2* serves as the critical negation point.

 


Target and re-assessment levels:

Important levels: R1* and S2*

Primary trend: RO/S1 consolidation, followed by a bull trend to T1.

Current trend: Gains to RO and R1*

Monthly Range: R1*/S1

Technical rating: Medium




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