Dissecting the chart of PSG Group

2020년 2월 15일

I have spent some time Dissecting the chart of PSG group and my findings lead me to believe that the stock is destined for some downside in the next few weeks.

Firstly, the formation of a double top and the consequent break of the neckline at R225 projects a technical target of R205. However, it is also possible that we tag the S1 Pivot level just below @ R195. (during the last two years the stock has always tagged the S1 Pivot at some point during the year). In addition the stock also tagged the Yearly pivot of 2020 in early January at R235 which was rejected after a couple of days where the stock battled to break above this level. (bears had the upper hand here which is clear in the chart).

Secondly, the configuration of the moving averages is positioned for downside. We are witnessing both your shorter term moving averages (50dma,20dma) now below your longer term 200 day moving average given further emphasis to the weakness of the stock.

Thirdly, After recently breaking below the neckline support @ R225, the stock came back to retest this level and consequently price rejected off the neckline and started a move lower.

Given all of the above, the probability favors further downside in the stock and it would not surprise me to see this name tag both its Double-Top Target of R205 as well as the S1 Pivot Level @ R195.

2020년 2월 24일

노트

First target tagged today at R205

2020년 2월 27일

노트

Second and full target @ R195 reached