JSE:RMI Rand Merchant Investments Markdown to start?
Last year I followed the distribution pattern on RMI (See post below) which now seems to be completing. Price had found support at the at the bottom of the Trading Range (TR) but was unable to rally back the top of the TR. After some consolidation, we see a change of character bar (Significant reversal bar). RMI could now be ready to break out and start the markdown.
Comentário:
The start of the markdown has been confirmed.
Comentário:
Price has reached the climax lows of December 2015. However, it is still looking week. We have seen effort to push the price up (Volume) but no response in price indicating high levels of supply overcoming the demand. This has also resulted in negative divergence in the Volume RSI. My expectation is for the markdown to continue.
Comentário:
Last weeks break of the downward channel that formed and the downward momentum is reducing as it reaches the lows of the TR. Will be watching how it reacts to the 200Day MA to confirm if the markdown is still in play. Declining volume on the up moves shows that this is possible only a pullback.
Comentário:
After a pullback on low volume, some volume has pushed the price lower again and the decline continues.
