Sell recommendation on Anglo American [JSE:AGL]
The Head & Shoulders pattern looks to have appeared on the bullish Anglo American Plc [JSE:AGL] . We can see from the chart that there is a slightly descending neckline (bearish signal). This pattern will only be valid if the price falls below R212. The H&S projects a downside target of R195.00, however because of the bullish nature of the stock over the last few weeks, we would be looking to take profit sooner, at near the R203.00 gap.
Entry: below R212.00
Stop Loss: R218.00
Take Profit (1): 203.00
Take Profit (2): 196.00
There is a good chance that this H&S could fail miserably, due to the bullish nature of the stock. IF the price breaks the shoulder at R220, go long and look to take profit at R240.00
Trade responsibilly and never trade what you cannot afford to lose.
