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Exxaro Resources Ltd JSE:EXX - technical trade note

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Barry Dumas
Exarro-Technical-Trade-Note

Update (16/05/2018) - Exxaro Resources Ltd (EXX)

Exxaro Resources Ltd (EXX) has reached our first target price of 12582c per share. We might see the price retrace as traders take their profits. My outlook is still to hold the stock to the second target price of 13550c per share.

How to proceed: (Two ways of managing your trade)

  1. Take partial profit and manage your stop to entry 11814c.
  2. Move your stop loss to your entry 11814c and let the price action run to your target price 2 at 13550c.

Screen Shot 2018-05-16 at 14.42.39

Source: Bloomberg

*End


Exxaro Resources Ltd (EXX) has been consolidating over the last month under the 11593c level which is giving some resistance to the price action. With F2017 underlying earnings up 38% and a strong balance sheet coupled with higher coal prices we can expect the price of Exxaro Resources Ltd (EXX) to move higher.

Note: the price needs to close above the 11593c resistance level to support the move higher. The 50-day simple moving average might deliver some resistance in the short term but will support the price action once it has moved higher.

Outlook: commodities are currently under pressure and this might continue in the short-term but if the Rand (ZAR) continues to weaken then we can expect our resources to move higher.

Full Trade Summary Below:

Trade: Exxaro Resources Ltd (EXX)

  • Entry (buy): 11814c
  • Stop loss: 10815c
  • Target price 1: 12582c
  • Target price 2: 13550c

Screen Shot 2018-04-25 at 09.31.38

ALSO READ OUR "MOVING AVERAGES" TO BRUSH UP ON YOUR TECHNICALS

 

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