African Rainbow Capital

Technical Analysis

African Rainbow capital is currently trading in an uptrend that has only been tested twice on its upper trend resistance. As shown in the picture above, the stock is trading above a support level of R5.82/share( marked in yellow) and price seem to be rejecting nicely at the level. 

The stock is presenting a potential trend testing at R8.50/share and this will be the third test on the trend. This will be a return of ~40% from the stock's current price of R6.01/share. However, there is a potential price pullback to the support at R5/share (marked in purple) and this is a 15% drawback from current price. 

Disclaimer: This is not financial advice. All trading involves risk.