The DOLL/ZAR confirmed a firm test of the resistance line at 7,20 with even a small overshooting before turning lower. The daily closing was however strong last night suggesting there is more upside potential but only a daily closing above 8,20 will support a move up suggesting a retest of the 8,50 area.
The indicators of the daily chart are however still below the line while those of the s/t ones are mixed favouring some consolidation/ correction.
The move up sent overbought the indicators of the hourly chart well above the 70% level suggesting a possible change of the tone to positive. The decline we are seeing could therefore be corrective and a buying opportunity but we suggest waiting for a possible retest of the 200 hours line at 7,9248 if not even a little lower before trying a long position with a stop however below 7,82!!
We sold the suggested overshooting of the 8,19 line and moved already the stop to 8,1350. We are looking for a 7,94 undershooting!!
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