Impala Platinum Holdings Ltd (JSE:IMP)
Leigh Riley ?? Strategic Business Executive (CAIA)
Harnessing strategy and leadership to turn organisational goals into growth and success | Passionate about the planet, people and ethical business
Yesterday Implats had an exceptional day of trade on the local bourse finishing up over 18% on the day, having gone into a volatility auction during the course of trade. Commodity prices continue to rally and the USD whilst slightly weaker against the ZAR still remains relatively strong lending itself to better conditions for resource counters in general. The price of Implats has run very hard and one would expect, given yesterdays break of diagonal resistance and strong surge up to resistance at 4520c, for the share price to pull back and bulls to take some reprieve and a renewed opportunity for those favouring more upside to get in closer to support at 3850c. The share price is now trading above the 200 day moving average giving further bias to the upside.
Some interesting points to note:
- A double bottom formed, further accompanied by what looked like a bullish flag formation thereafter which led to the break above 3850c.
- Volume was very high with little price action movement on the day before yesterday perhaps indicating some accumulation prior to yesterdays break, this may mean there are still some legs left in this move targeting 5150c.
- The share price is overbought at these levels but can remain this way for extended periods of time in a bullish uptrend.