Great recovery coming from Coronation, with another +/- 5% run again today, bringing the YTD performance now to double-figures. After the 20-day moving average broke above the 50-day on the 4th of March, the trend definitely became a bit stronger and now look a lot healthier. The 14-day is closing in on the 70 mark, which does place the share now close to short-term “oversold” territory. I’m however already long, with a longer view on the company. I’m therefore not going to be too phased about any short-term noise for now. My target for now is both the 200-day moving average at R50.25, which is also the 0.236 . A break above this level, could see us test R57 again.
Should we see a reversal in the trend, my first alarm bell will ring at R41.50 (50-day moving average), with huge horizontal support at R39.15. A break below this level does spell serious trouble, with the diagonal at R36.25 then coming into play.
I’m still happy with the Thomson Reuters consensus target of R54 and with a historic Dividend Yield of 9.7% currently, I’m still very happy with this position.