Sappi

[#1]

Is Sappi at the bottom of its cycle? It seems their management has started pulling the business up again. Any Comments?

[Brommie]

The future prospects for SAPPI are quite promising but if you look at the charts it still appears to trade downwards. I do not think that this is a poor 'investment' (long term) but then it will also not be amongst the best performers on the JSE for 2007 either. I am waiting for it to break resistance and are not going to tie up too much of my capital in this one.

[#3]

Excuse my ignorance but, "breaking resistance" is quite a familiar term that i've heard. Im not too clued up on my technical analysis. Is this when it breaks through its MA's?

[Tango]

There is a good explanation of how support and resistance forms in the 'Help and Education' section of this site - look for the link on the left, then click on 'Technical Analysis'.

[cfm]

Sappi is back at its Feb level and is looking like it may bounce again from 9850. This would mean a double bottom. 9850 has acted as support in the past as well, so this may be an important level. The overall trend remains down, but a bounce of 62% of the previous downward move will see a 5% profit. Can make it 20-30% with a SSF.