If You Bought Thungela Resources, Here's How Much Profit You Would Have Made
Extreme price movements always catch our attention.
They're either signaling risk or opportunity.
As we continuously monitor the market for trading opportunities (as well to communicate key info), we run shares through the price action guide to assess reward-to-risk and uncover clues for the next potential move.
Take Thungela Resources for example.
The aggressive sell-off has been noticeable for several days, with the share heading toward the psychological R100 level. Just after midday (12h19), at a price of 9979c, we 'took the temperature' by inserting the numbers into the model.
The result? A 'buy reading' on both the short term and medium term time frame.
Within the span of 4 1/2 hours, the share rallied from 9979c to a high of 10407c.
Think about this, if you bought 500 shares between say, 9979c and 10000c and sold them later in the afternoon at a higher price between 10350c and 10400c (accounting for a 370c gain per share), you would have made a profit of R1850 before costs.
That's R1850 in just over 4 hours!
For some traders, R1850 is 'nothing'.
For others, R1850 is a contribution to a deposit on ......
Well done to clients who may have recognized this move and participated.
Previous Post: Although the long term chart is in a downward trend, the price action model is signaling the probability of an ultra short term rebound.
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