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Harmony Gold: The Buy/Long Reward-To-Risk Is Unappealing

Writer's picture: Lester DavidsLester Davids

Trade Harmony Gold with Unum Capital.

To get started, email lester@unum.co.za


Analyst's Price Action Model as of Wednesday 22 January at 09h32
Analyst's Price Action Model as of Wednesday 22 January at 09h32

What is the current overall trend?

The overall trend is bullish, as indicated by the long-term price action reading.


What is the short-term price action reading?

The short-term price action reading is overbought. This suggests that the market may be due for a consolidation or minor retracement.


What is the medium-term price action reading?

The medium-term price action reading is also bullish. However, it cautions against chasing the market and suggests looking for overshoots or failure to hold prior session range highs to short-sell back to the 8-EMA.


What is the 7-day trend?

The 7-day trend is overbought.


What is the 14-day trend?

The 14-day trend is very bullish.


In summary: The market is currently in a bullish trend, but short-term overbought conditions suggest potential for a consolidation or minor retracement. Traders are advised to exercise caution and look for opportunities to short-sell back to the 8-EMA if the market overshoots or fails to hold prior session range highs.



 

Previous Post: Trading Harmony Gold? Here's What You Need To Know (16 January)

Analyst's Price Action Model
Analyst's Price Action Model

Q: What is the overall trend for HARMONY GOLD? A: The overall trend is bullish.


Q: What is the current 7-day trend? A: Overbought.


Q: What is the current 14-day trend? A: Very bullish.


Q: Is there any opportunity for a short-term buy/long position? A: there is a very strong move with buyers in control. However, it is advised not to chase the price. If the highs fail to hold, then the 8-EMA may be a short-sell target.


Q: What is the outlook for the medium term (2 to 4 weeks)? A: There is aggressive buying, but it is advised not to chase the price. Look for an overshoot or failure to hold prior session range highs to short-sell back to the 8-EMA.


Q: What is the outlook for the long term (5 to 8 weeks)? A: Harmony Gold has resumed a bull move in a strong upward trend.


In summary: The price action model for HARMONY GOLD indicates a bullish trend across all timeframes. However, the short-term is overbought, so caution is advised. Traders are advised to look for opportunities to short-sell if the price fails to hold recent highs. The long-term outlook remains bullish.



Lester Davids

Analyst: Unum Capital

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