This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The aforementioned breakout proceeded to fail but has now rallied to breakout once again, this time above the upper resistance level.
The upside breakout carries a higher degree of merit as it is in line with the long-term trend of the rand’s weakening against the dollar. The price has pulled back to retest the breakout area before now making an attempt at its projected target which we predict to be R10.80/$.
The target is derived by taking the height of the sideways range and projecting a proportionate distance from the breakout area.