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JSE:PPC Daily Analysis

Daily Analysis – PPC

In today’s analysis we going to be looking at PPC.

With talks of a merger between PPC and Afrisam, PPC has issued a cautionary warning when dealing in its securities as the proposed merger and negotiations could have an affect on its share price.

That being said in today’s analysis I am going to mix things up (as I do) and use indicators that are not used so often. I am going to be using the Williams Alligator Indicator in conjunction with MACD to analyse the current trend.

As you can see from the chart the MACD is showing a bearish signal and the majority of the MACD bars are below the 0 line showing a minus signal. (Red Bars below the main chart).

The 3 alligator indicators (red, green and blue solid lines) are also pointing down also showing a bearish probability.

Although the current trend is above the 200 day moving average and the 50 day moving average is above the 200 day moving average, I see possibility for further movement down.

Any up movement will be met with a strong resistance at 701 . A close above 701 could see it go to 800 making a new yearly high.

A close below the minor support area at 654.7 could possibly send the price to the 200 day moving average at 612. Further down movement could potentially see the price at the major support areas at 555 and 527 in extension.

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*All information in this article is the authors 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.