Sappi has been a share that has co-operated when required, and traded in line with both my short term and long term view. Most recently, the share provide an opportunity for a swing at ~4800c, with the subsequent move to 5400c. Over the past few days we saw a pullback, however strength has re-emerged with buyers coming strongly during yesterday's session. A cup and handle-like formation has developed with a measure move of 5700c and potential for beyond this level. The share remains in close proximity to it's gradually rising 21-week EMA while also having consolidated over several months. The setup is invalidated on a daily close below 5180c.
SAP was originally a buy idea at 4119c in December.
Lester Davids
Analyst: Unum Capital
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