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Cashbuild JSE:CSB Technical Analysis

Daily Analysis – Cashbuild

Cashbuild (JSE:CSB) was picked up today by my donchain channel breakout screener.

The Donchian Channel measures the highs and lows for the last 20 periods.

Wednesday’s candle broke out above the upper level of the donchian channel, represented by the blue channel on the chart.
The candle also broke out above the upper level of Bollinger channel, represented by the purple channel on the chart.

Based on the activity of the past couple of days, its likely that the stock is going to be heading for the 52 week high of 39,000.
The price would need to stay above the minor resistance area at 36,500 in order to continue this bullish momentum.
The MACD is also still showing bullish tendencies.

There are some concerns as Wednesday’s candle also created a large wick showing some bear strength and the stochastic oscillator is also in overbought territory.
Should Thursday’s candle be a bearish reversal candle such as a harami or engulfing candle, we could see the stock reverting back to the mean price at 35,000.
A break below 35,000 and we could see the price back at the next support level at 32,800.

Thursday’s candle will bring confirmation but as it stands it looks like the bulls are still in-charge.

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*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

Stanton Roux

Stanton Roux

Algotrading.co.za is a free online learning platform that merges my two passions software and trading. I like to bring a new twist to trading and show how software can improve your trading skills.