Well, last week certainly was an interesting one in the South African political arena. With the news of President Jacob Zuma resigning on Wednesday night and the election of Cyril Ramaphosa on Thursday - the markets went into a tailspin with massive volatility happening on the local markets and with the ZAR.
The ZAR opened this morning around the 11.55, and if you look at the monthly chart, you will see that this is the strongest that the Rand has been against the Dollar since Feb of 2015. (image 1)
Because of the volatility on the markets in the past week, the Head and Shoulders pattern that we mentioned had been forming last week has failed. The price gapped up massively on Wednesday to break above the neckline and continued up after that. (image 2)
If you plot an ABC pattern indi