Telkom

Telkom is one of South Africa's most established telecommunications providers.

- Analysts: Peet Serfontein, Motheo Tlhagale

The company has transitioned from a former state-owned fixed-line monopoly into a diversified operator competing across mobile, fibre, broadband, and enterprise Information and Communication Technology (ICT) services.

Technically, a developing rectangle pattern with the price consolidating near the upper boundary signals bullish momentum (see the rectangle pattern on the main chart). Persistent tests of the resistance level and price gravitating toward the top of the range indicates strong demand and buyer control.

The share appears to be entering the early stages of Wave five within the Elliott Wave framework, which typically marks the final impulsive leg of a five-wave sequence. This phase often follows a stabilised Wave four correction and signals renewed upward momentum as confidence returns.

A rising Moving Average Convergence Divergence (MACD) histogram signals fading downside momentum and weakening selling pressure, often preceding a bullish shift. Combined with a Coppock Curve forming a trough and turning higher, these developments strengthen the case for a potential upside reversal, especially when supported by stabilising On-Balance Volume (OBV) trends and constructive broader market conditions.

Technical analysis

The Relative Strength Index (RSI) is hovering near the 50 level, a key midpoint that signals balance between bullish and bearish momentum. Holding around or slightly above this threshold after recent pressure suggests sellers are losing control and downside momentum is fading.

This stabilisation often precedes improving buying interest, reinforcing a constructive technical backdrop for potential upside if price action continues to firm around key support zones.

Our entry range is between R48 and R52 with an upside target of R60 (+18.8% from current levels).