Trading African Rainbow Minerals: Using Data To Assess Risk

The motivation behind the Tactical Trading Guide (price action model) was to systematically uncover opportunities and assess reward-to-risk, saving time in the process!

In essence, the model is the analyst's thought process, on paper. 

Here, clients have access to a process that has help to guide traders in order to generate cash and which has helped to manage risk.

AFRICAN RAINBOW MINERALS is one of those names where the model stated: (1) "Aggressive buying underway but do not chase. Look for an overshoot or failure to hold the range highs to short back to the 8-EMA". 

Scroll down to view the reading for the close of business on Wednesday 16 April.

On Thursday 17 April and Friday 18 April, traders had the opportunity to reduce it short, which was followed by a move from above R175 to the recent lows of R154. The time-stamped model reading and updated chart is shown below.

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Trade JSE Shares with Unum Capital.

To get started, email lester@unum.co.za

Click on the image to enlarge.

Readings as of the close of trade on Wednesday 16 April.

These are subject to change as the price action develops.

Short Term (approximately 1 to 10 days)

Medium Term (approximately 2 to 4 weeks)

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SHOULD YOU URGENTLY REQUIRE A READING FOR THE LONG TERM, YOU ARE WELCOME TO E-MAIL ME AT LESTER@UNUM.CO.ZA

Lester Davids

Analyst: Unum Capital