$JSEPPH-Pepkor: More Consolidation To Come?
PPH made a strong recovery from the post covid-19 sell-off low at R9,31 to peak at a new all time high of R27,59.
The rally does seem to be unfolding in a 5 wave pattern with the all time high being the terminal point of wave 3.
Wave 3 is extended relative to wave 1 and wave 2 was a sharp and swift zig zag correction.
Using the guideline of alternation and the fact that wave 3 is extended, we may anticipate a triangle or a combination pattern for wave 4 implying further, prolonged consolidation.
A key level to watch in the near term is R18,78 and any long positions opened at current levels should consider this price as a stop-loss.
The rally does seem to be unfolding in a 5 wave pattern with the all time high being the terminal point of wave 3.
Wave 3 is extended relative to wave 1 and wave 2 was a sharp and swift zig zag correction.
Using the guideline of alternation and the fact that wave 3 is extended, we may anticipate a triangle or a combination pattern for wave 4 implying further, prolonged consolidation.
A key level to watch in the near term is R18,78 and any long positions opened at current levels should consider this price as a stop-loss.
