A low of 5.05! Now that's what I call a dive. 6 bob seems so far away.

Contrarian principles are applicable here,am preparing for a 0.5M SAFCOM purchase order.a fundamentally sound stock rewards those who stick to it even in times of euphoria.

I dont think Safaricom will go below 5 bob....anything below that there will be a stampede at the NSE...

There is advertising and there is this -> Click here That can get any rogue promoter sued via commercial laws mode of conduct.

Anyway back to trading. Scom has retraced 13% from the Aug 3rd close of 6/- to 5.20 as of today. As per tech analysis the weekly sell-off has been swift and is now overextended (oversold) and ready for a relief/counter bounce. This can be confirmed looking at the 50, 100 and 200 day SMA levels which have all been breached - making 5.70 the near term resistance. And today's price action and volume is interesting. After an intraday low of 5.05, the demand picked up (2:1) towards the close. Today's volume is what is called 'stopping supply' which is done by smart money aka maboyz (do they know something since this is not dividend inspired?). In most cases when a huge buy volume spikes goes into a falling price, the selling pressure is absorbed and this can be spotted from the last price before market close (5.35). The tech indicators, RSI and slow Stochastics are also deep in oversold levels. If tomorrow the share closes 4% down that should see the price at 5/- (the lower the better) where I intend to buy looking for a bounce up to 5.50 - 5.60 by Sept 3rd (book closure)- That being an 8% (minus commissions - buy/sell) weekly gain. Since the MACD is rolling south on the 6mth chart, I can't hold this one on mid to long term until the 100 day SMA level is reclaimed - currently at 5.70. After book closure the price action should be interesting. If we can deep to 4 - 4.40 levels the better for long term entry.

@qw - since you're a techs guy, what's your take for this quick profit for a 500K which will be 40K in a few days. Not bad for a quick buck on the contra trend especially after this spooked some loose hearts Morgan Stanley downgrades scom to equal weight - their target is now 5.60 from 6.40
NOTE: This is risky and not for the faint-hearted

@the deal - I'm a bit concerned with the lack of buy volume on NSE overall, that is not supportive of a healthy rally and supporting 4600 levels will be a bit difficult.

despite what your tech analysis says, scom profitability will reduce significantly going fwd. logically i d expect the same to happen to the share price. those trying to support the price only want to create an opportunity to bail out. one cannot support a 200b+ share for long. scom was overvalued during the IPO and the correction is nigh. mobitelea collected their cut kitambo!