Weekly game plan 18- 22 January 2021

Tigerbrands (JSE:TBS)



Tiger brand is looking good at the moment. Though the stock seems to be struggling breaking through the 21403c resistance level. A 3% close higher would confirm the trade at 22045c, only if the 30w EMA crosses the 60w EMA which is quite close. The preceding higher lows creates an ascending triangle pattern, which is a bullish continuation pattern, but could be used as a turning point. My minimum target at the moment is the 78w high at 25145c. However, I can see the stock back at the 39746c levels.

Distell (JSE:DGH)

Horizontal bullish flag.

A nice looking horizontal bullish flag on distell. The stock could possibly be halted by the alcohol ban. However, I think the ban on alcohol will be lifted soon and the company will be back to cash generation. We could see the share being spring boarded by the lifting on the ban. Even if its a restricted sale of alcohol. My minimum target for this is 12161c. I’m already in the trade however, I will not be adding to it just yet. Only after my trend indicators have turned bullish.

Multichoice (JSE:MCG)

Ascending triangle continuation pattern.

The stock has a nice looking ascending triangle pattern. This is a trade I’m in at the moment. If we break through the 14000c resistance level, I’m looking to add into the position. My target remains 17690.

African Rainbow Minerals (JSE:ARI)

Vertically bullish

The stock seems to be in a nearly vertical bull market. A trade that I picked up a while ago and have been adding to it. Last week the stock made a new all time high, taking out the prior all time high of 30699c it set back in July of 2008. The share has now made a 100% recovery from that high. The new high is now 30725c. I’ve decided to remove my target on this trade and I will now only exit on stop across all positions. I think the share will run even further and make even higher highs.

Aspen Pharmacare (JSE:APN)

Bullish divergence.

Remember the bullish divergence of back between September 2018 and August 2019. It took more than a year to form. Well since the stock bottomed in August 2019 it has been since making higher lows, even during the March 2020 crash saw the stock making a higher low than it did in August the previous year. However, the stock seems to have been struggling to break the 15000c level. I’m looking for 3% close higher at 15450c. My minimum target on the stock is the prior support level of 24000c. To had to the wind at the back the vaccine deal with JnJ will most likely springboard the trade.

Clicks (JSE:CLS)

Ascending triangle

Click breaks through the ascending triangle pattern on Friday. I will be adding in to the trade and moving my initial stop to 23743c and my minimum target is 35800c.

Mr Price (JSE:MRP)

Cup and Handle

We had a nice bullish divergence on the stock between August 2019 and March 2020. The stock since made higher lows and higher highs. We now have a nice cup and handle pattern. To add to the wind at the back the company’s acquisition of power fashion adding to their cash generative Mr price shops. Targeting most the Mid-lower LSMs. Looking for a break above the 17790c resistance level. My trend indicators are also looking close to changing to the up-side, as the 30w EMA is quite close to crossing the 60w EMA. My minimum target on this trade is 25000c

Rand Merchant investment holding (JSE:RMI)

Bullish divergence, Head and Shoulders, and Ascending triangle

We had a nice bullish divergence pattern on the stock. The share since made higher lows and ultimately forming a head and shoulders pattern. To add to the wind the right shoulder formed an ascending triangle pattern. I;m looking for a break above the 3278c neckline. My minimum target on the trade is 4804c

Transaction Capital (JSE:TCP)

Horizontal bullish flag

We nice looking horizontal bullish flag on the stock. Looks like the 2300c-2600c is an area of supply and demand. Looks like there’s a seller at 2600c and a buyer at 2300c. At some point either the seller will run out Transaction shares to sell, or the buyer will run out of capital allocated to the share. At which point the share will break in the direction of the winner. At the moment my money is on the buyer. I’m looking for a break through 2600c.


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