Today we are going to be analysing Telkom.
This stock was picked up by my custom Bollinger Reversal Screener.
As you can see on the chart, yesterday’s candle broke out above the top Bollinger band and was rejected by the minor resistance area at 7,668. Today’s candle opened above the top band and made a small move back into the Bollinger range forming a bearish Harami pattern.
Its is likely that this stock will revert back to its mean at the 7,267 area. A further movement down will see a test of the 7,000 area and 6,700 in extension.
Failure to break below the mean area at 7,200 will possibly lead to another test of the 7,700 area.
For the short term we are possibly going to see retracement back to the mean, but seeing that the 50 Day MA is still above the 200 Day MA , I feel that we could see some longer term gains.
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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.