From last month’s commentary ‘This is one really messy Daily Chart above but that is what you get when you travel sideways and have to finesse the support & resistance levels. All I can really say about the last month is that we went up initially then went down and now are moving back up again – ultimately still sideways!’.
I can only agree with myself that May was much like Apr for USD/ZAR. I would add that on the Weekly Chart we had a Key Reversal Down three weeks ago but there was no follow through so it is basically a fail. Additionally, two days ago on the Daily Chart above we had a KR Up, this time but as you can see so far no follow through.
Basic support (despite the messy Chart) is 12.1069, 12.0386 – 12.0082, 11.9411, 11.8580 – 11.8886 & 11.6888. Resistance is at 12.1069 (if it should open lower), 12.1615, 12.2056 & 12.3000. I have a tendency, prompted by previously mentioned failed KR Down on the Weekly Chart to look for the upside as next potential.
However, this would suggest it may be worth waiting until the Long MA (currently 11.5185) arrives closer to the market. Bullet point above obviously stay stays the same.
ADM Investor Services International Limited is authorised and regulated by The Financial Conduct Authority. Member of The London Stock Exchange. Registered office: 4th Floor Millennium Bridge House, 2 Lambeth Hill, London EC4V 3TT. Registered in England No. 2547805 a subsidiary of Archer Daniels Midland Company. Risk Warning: Investments in Equities, CFDs, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value, investors should therefore be aware that they may not realise the initial amount invested, and indeed may incur additional liabilities.
These Investments may entail above average financial risk of loss, and investors should therefore carefully consider whether their financial circumstances and investment experience permit them to invest and, if necessary, seek the advice of an independent Financial Advisor. Some services described are not available to certain customers due to regulatory constraints either in the United Kingdom or elsewhere. © 2014 ADM Investor Services International Limited 2014.