KAP Long setup

The KAP weekly chart clearly shows the strong bullish trend in place with respect to this stock. We also see an interesting bullish stochastic crossover  which can be viewed as a failed stochastic reversal as the stochastic crosses back up over its signal line after reversing off overbought conditions  - again a bullish sign.

The daily charts show how price has started moving off its low levels and is reversing upwards and this is reflected in the stochastic which has crossed upwards out of the oversold zone.

Finally the support and resistance chart shows how price has moved into a flag-type pattern on a 5th wave upswing with an anticipated breakout outcome reflected by the green line

Our setup is to enter the long on any intraday pullback to R6.60 or better with a stop set as a close below the swing low of R6.20. Target price is R7.50 as per the projected price line yielding a 2.25-1 reward-risk. Importantly we're doing this in anticipation of a breakout which enhances the trade risk somewhat so taking a smaller risk-based trade size is not a bad option.