Spending some time on Anglo American. This remains one of my favourite mining house. Lately, it did however find itself in an extreme overbought environment, which was “corrected” in one big swoop. For the first time since November last year, the share price is now extremely oversold according to its 14-day .
Any further weakness should see first support at around R334, with the 200-day Moving Average (at R328.50) being a strong . If I was a short-term trader, I would most probably use this as my stop-loss level.
We however saw similar price movements in November 2018, which was followed by an equally strong recovery. Should we see a bounce off these oversold levels, could see $JSEAGL test the 50-day moving average at R382.
Thomson Reuters consensus still got a R394 target price on Anglo’s.