Thungela Resources ($TGA)

April 21, 2024
Josh Viljoen
Josh Viljoen

A technical analysis of the Thungela share price


Thungela Chart

Thungela Resources has been on an impressive run since listing in June 2021 with the share price current up over 300% year to date. The company recently announced that they will be paying an interim dividend of R60 a share, and this has resulted in an influx of buying pressure buying the share price higher in the past two weeks.


The share has presented some good buying opportunities over the past year after breaks of consolidation and of previous levels of support and I have marked these with green circles on the chart. When trading it is important to exercise patience and not chase the market but rather wait for the market to come to you and your desired entry price. 


You may be wondering what the share price is doing now and whether now is a good time to buy or sell. If I was holding Thungela shares I would not be selling now and I would continue holding until after the dividend payment date (26 September).


The share price has made a strong push up in the last two weeks and gained 30% in this short period. There is a key level of support at R300 and at R270. If I was looking to buy the shares before the ex-dividend date (21 September) I would only do so should there be a pullback to around this R300 level. It is important note that once the dividend is paid, we can expect the share price to drop up to R60 a share to account for this outflow of capital in the business.




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