Week 5-9 October analysis

Planning trades in advance is a very important part of a trader’s success but most importantly is following the plan and trade the plan. In this post, I go through some of the opportunities I’m looking at, looking at weekly charts.

Capitec bank

 

The price broke out of the range on the 30th of September 2020 and confirmed closing above R1024. The price close above both the 200 Week and day EMA. target is that R1319 previous minor support. Will be monitoring price action if/when the price gets closer to that level. The split from PSG group is important to note. It will possibly trigger some significant buying into Capitec as it gets up weighted in the indices its in.

Mediclinic

 

We still waiting for the Head and Shoulders pattern to play out. The price is tested the 200 day EMA and the R62 resistance level in the past week which both held. We wait and see how the share price performs this week

British American Tobacco

 

We had a false break in the past week, and the 200 day EMA held as a resistance level quite significantly. We now wait to see if the break to downside is there to target the R495 support level

 

Growthpoint

 

We have a descending triangle pattern on growthpoint. The price broke through the base of the triangle pattern. The price re-stest the base of the triangle pattern. Triggering a short trade. Which I’m in at the moment.

Tigerbands

The share has been on a downward trend. Trading below its 200 Week EMA. We have a symmetrical triangle pattern. Waiting for a break below the base of the triangle on a daily chart. The price broke on the upside on. However, we have another resistance trend line lurking. And a resistance level at R216. Price is still below 200 week and day EMAs

Discovery

 

The price broke through the 200 Week EMA. We have some resistance level at the R132 level. A 3% break on the upside (R154) will trigger me long. The price is currently trading above both 200 week and day  EMAs. The price also broke through the downtrend line and came back to re-test it and it held as support. The price had been making higher highs and higher lows prior to breaking.

Exxaro

 

The price tested the 200 weekly EMA and it held as support. Forming the right shoulder. We now just wait. This could take a few more weeks to play out.

Spar 

The share has been sandwiched between 2 ranges the  R163 and R189 range, and R189 and R219. Recently test the 200 week EMA. I’m looking for a break above R189 and close above R195 (3%). Targeting the top of the second range (R219)

Vodacom

The share has been stuck between the R119 and R137 range. The share tried to break the 200 week EMA but the R137 resistance level held. I’m looking for a break below R119 (3% below R116).

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