Trade summary: Short KIO
Stop Loss: 39000c
Target price: 30300c
The stock has been having a great rally and in recent months, having broken higher in mid-August after the company released strong numbers and reintroduced dividend payments to shareholders. The share price has begun to lose its momentum since the middle of January 2018. In the past week the share price has broken out of the upward channel. On the monthly chart for the share below, you will notice that the share has a historic resistance level at 38000c and struggled to remain above this level in January. Kumba Iron Ore short term price movement appears to be heading down towards 30300c as per my analysis above. I would look to enter the short trade at 35500c, with a stop loss of 39000c.
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