54 didn't hold so next major support is 50. There is a trend line with support at around 50.70 - hoping that or the 50 level holds to take us back up! Otherwise it can get ugly again and we can drop more if 50 doesn't hold and next support could be 46 levels but we getting oversold on the daily so I don't think we could break through another support.
Daily RSI now under 30. Yeah I remember how we struggled to break through 50 a few months back and it didn't hold for even a bit. People are selling this like crazy like its going to R2 and nothing has changed in the space of 2 weeks..
Them previously disadvantaged holders of shares are selling 'cause they're worried of them Government's nationalisation strategy. With the Russians now even building old tech generators for Escom, its better to sell out - the sooner the better.
We just need to find some support.. and with todays lower low under R50 we have now developer a down trend that we need to break out of.. 4670 looks like the next good support level entry (longer trend and bearish support line)! 56 is also a retracement level. I would look to sell at next swing high, buy back later, not looking good now at all.
It amazes me when a share suddenly drops people always find these crazy reasons to be bearish and make the drop worse- FEAR!!! These reasons were always there... Come any day now Telkom will issue a trading statement.. we will be up 20% in a few weeks people will be praising Telkom.... This is why I love the stock market.. 1 day is never the same as the next :-) I am a buyer again at 46 levels :-P