UK: SABMiller’s share price recoups losses

SABMiller’s share price tested previous support on Wednesday, but the long-term uptrend has not been broken, Business Day reported March 2. The share price managed to recoup its losses and closed in the black yesterday to keep support intact.

Until recently, the price action has underperformed the all share index. Earlier this week, the relative strength line broke above a trend line, implying that SABMiller has started to outperform the market.

In the last update we recommended that medium-term traders add to long positions on moves to R160 with a stop-loss at R145. This medium-term recommendation has been maintained.

In the case of short-term traders, a topping formation has been developing. A close below support at R160 implies a measured move of R148 for a temporary pullback.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .