Kumba setup for potential downside?

The price of Kumba has formed a bearish flag formation.

The pattern highlights a cumbersome move up after a strong move down, suggesting that momentum remains to the downside and possible further weakness.

For the pattern to trigger a trade, a breakout or close below 42000 would need to be confirmed.

If the pattern confirms a downside break, the recent low will become the initial support target. If this level is then breached, the bear flag predicts a further target at 38500.

Should the price of Kumba trade above the 43500 resistance level, the pattern would be deemed to have failed.

Kumba chart - 29 October

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