Exxaro Resources Ltd. (EXX):
Exxaro Resources Ltd, has been in a downward channel as it tracked the leading indication of the Copper price. The downward channel started from around the second week in April from a high of 12081c to a low of 8313c testing support at that level on the 27th of June, but subsequently moved higher as Iron Ore and Coal prices surged from resent lows gaining momentum.
Conclusion and outlook:
Coal and Iron ore outlook for Exxaro Resources Ltd remains positive for the remainder of the year, the company anticipates that prices of Thermal and coking coal should remain stable for the year, with a potential uptick in underlying commodity prices in the second half of the year. As a result, The price of Exxaro should gain momentum and reach the next resistance level of 10801c, with a subsequent break from this level supported by higher commodity prices. This move could see Exxaro Resources Ltd move to 11681c and 13116c as indicated in the chart below.
Trade:
When entering the Exxaro Resources Ltd trade at the current level of 9610c, a stop loss level to consider would be 8729c and our first take profit target is at the resistance level of 10801c. If the share breaks through this resistance level, we anticipate a move to 11695c, when this occurs you should adjust your stop loss level upwards to your entry price or just below to minimize your risk as the price moves in your favour.
Always remember to apply your risk management measures before placing your trades as this will keep you trading in the markets.
Summary:
Direction: Buy (long)
Entry: 9610c
Stop Loss: 8729c
Take Profit: 10801c
Source: Bloomberg 2017
