Rainbow Chicken Limited [JSERBO]
JSERBO listed at R4.00 on the JSE in June 2024 and as do most IPOs, had a short-lived pump rally that saw highs of R6.75 being sniffed shortly thereafter. The chickens eventually got sent back to the coup and the stock plummeted to consolidate and trade sideways between R3.30 and R3.94 from August 2024.
With strong support around the R3.30 level, we saw the week of the 25th of November 2024 close bullishly from this zone with a beautiful hammer candle at R3.50. This close also printed a higher low and higher high than the previous Weekly Candle. This may be a signal that the bulls may be charging to give the chickens a run for their money to higher levels.
A recommended BUY position can be initiated as follows:
A slip below R3.30 will open up probabilities of the stock plummeting to R2.37 in the short term.
