Stocks in play – 10 may 2021

Seems like we are in a healthy bull market at the moment.

Banks looking fairly strong. PGM miners experienced some selling off, 2 held up. Fund managers are roaring, not surprising considering the current market.

Here are my this week’s Stocks in play

African Rainbow Minerals (ARI)

The stock has been consolidating for about 18 weeks, after paying a dividend. A breakthrough R289 provides a good entry with a stop below the R266 support level.

Aspen (APN)

The weekly chart of Aspen looks like there’s some accumulation on the stock. I’ve been building my position on Aspen for some time now. A breakout above R164.70 provides a good entry for a R240 target. The break out would also be a close above the 50w EMA. That’s some decent wind at the back

Barloworld (BAW)

Nice breakout on Barloworld making a new 52 week high.

BHP Group (BHP)

We have a nice ascending triangle pattern on BHP. A break above R468.20 will prove a good entry on the stock. With a stop around the R428 level

Bidcorp (BID)

We have a nice Ascending triangle pattern on the stock. And a weekly golden cross. A break through R291 provides a nice entry to building a position on Bidcord. A Doji candle testing the 50d EMA

Bidvest

Nice looking symmetrical triangle pattern on the stock. After a golden cross at the start of the formation. A breakout from the triangle provides a good entry with a stop below the 200d EMA.

Richemont (CFR)

Nice Ascending triangle pattern on the stock. A breakout from the R150 level provides a good entry for the a stock with a stop below the 50d EMA

Coronation (CML)

We have a nice Cup and handle pattern on the stock. A breakout through the neckline (R56) provides a nice entry with a stop just below the low of the handle, around R54

Distell (DGH)

Distell moves again. There’s a handing resistance level around the R138 level. A breakout through that level will provide a good entry on the stock. The stock has fully recovered from the Covid-19 crash

Glencore (GLN)

Cup and handle pattern with a nice strong breakout on Glencore. With a golden cross on the weekly chart. After retracing about ⅔ of the preseeding rally. Using the height of the cup for a target, R100 is the target. We could see some reaction around the R70 level. If the stock can break the R70. It can easily get to R100

Growthpoint

The REITs were probably the hardest hit during lockdowns, I speak under correction. It’s unsurprisingly they were amongst the last to fashion a recovery. Growthpoint seems to be amongst the leaders of the pack. With a nice cup and handle pattern plus a golden cross. A breakout through the R14.90 level provides a nice entry with a stop just below the both 50d & 200d EMA. Around R13.70. In this case the cup and handle pattern is a reversal pattern. Using the height of the cup, target is around R19

Kumba (KIO)

Nice looking head and shoulders pattern on the stock. After the right shoulder tested the 50d EMA. The stock broke the R680.50 resistance. Using the hight of the head the target for stock is R816.

Investec (INL)

The stock broke the R55.50 . Using the height of the of the round bottom, the target for the stock is R82.60.

Momentum metro

Nice cup and handle breakout on the stock. The cup traced about ⅔ of the preceding rally, from the R19.50 resistance. Using the height of the cup for target. We could see some reaction around R22. There’s a second larger Round bottom and a potential cup and handle formation with the neckline being R22

Mondi

We have a nice ascending triangle pattern on Mondi. If we can get a close above R397.70 provides a good entry, with a stop below the last swing low around R375.50

Mr Price

We have a nice cup and handle pattern. The broke the 200w EMA, tested it and held above it when formaming the handle. If the stock can break the R202 level. Using the height of the cup, the target is a round R290

MTN

Nice cup and handle formation on MTN. The stock broke the 200w EMA and stayed above it. A breakout, through R96.30 provides a good entry with a stop just below the 200w EMA. Using the height of the cup, the target is R139. With a stop sound R88.90

Nedbank

Nice ascending triangle pattern on Nedbank. The stock broke the 50w EMA. Banks are generally starting to do much better. Leading the recovery of the lower leg of the “K” shaped recovery. A break above R147.50 provides a nice entry and with stop just below the 50w EMA around R135. Using the height of the triangle from its broadest point. The target for Nedbank is around R226

Nepirock

We have a head and shoulders pattern on the stock. The stock broke the 50w EMA and stayed it. A close above the R100 neckline provides a good entry, with a stop just below the 50d EMA around R94.40. A close above R100 will be a new 52week high. Using the height of the head the target is R140

PicknPay

Nice ascending triangle pattern on the stock. The stock broke and stayed above the 50w EMA. A break through the R57 resistance level provides a good entry with a stop just below the the 50w EMA around R53. Using the height of the triangle from its broadest side the target for PicknPay is R74

Royal Bafokeng Platinum

Platinum stocks have been selling off the past week. Royal Bafokeng along with Sibanye seem to be the strongest of the bunch. RBP tested and held the 50d EMA. We have a nice falling wedge on the stock. The break out of the the wedge provides a good entry and a nice tight stop just below the 50d EMA. We had a nice doji reversal pattern on the test of the 50d EMA. Target for the falling wedge is the high of the wedge around R118

Rand Merchant Investment holding

Nice symmetrical triangle pattern on RMI. The stock broke both the 50d EMA and the 200d EMA, plus a golden cross. A break through R32.35 provides a good entry with a stop just below the 200d EMA around R30.60. Using the height of the triangle from its broadest point, the target is R37

Sasol

We have a nice cup and handle breakout on Sasol. The stock breakout and retested the neckline. Allowing for the tightening of the stop to R222. A close back above R250 on the daily chart, provides a good entry and tightening of the stop to R229.

Shoprite

Nice cup and handle pattern on Shoprite. The stock broke above both 50w EMA and the 200w EMA. In forming the handle, it did break back below the 200w EMA, but stayed above the 50w EMA. A Close above R262 provides a good entry with a wild stop around R141. Using the height of the cup the target for Shoprite is R223.

Sibanye

Sibanye came out with a strong trading update, the market strangely initially reacted negatively, but the stock closed back in the range. We have a nice horizontal bull flag as the stock consolidates from the previous rally. A break above R73 provides a good entry with a stop just below the flag’s lows around R63.70. Using the flag pole’s height the target is around R93

Telkom

Nice cup and handle formation on telkom. The stock broke the 50w EMA came back to test in forming the handle. A break above R43.20 provides a good entry with the stop just being the doji candle around R36.25. Using the height of the cup the target for telkom is R68

Truworths

We have a nice cup and handle pattern on Truworths. The stock broke the 50w EMA and stayed above it. A break above the R51 neckline provides good entry with a stop just below the handle. Around R45. Target is around the R70 level

Woolies

Nice cup and handle pattern on Woolies. A close above R53 on the daily chart, provides a good entry with a stop just be the 200w EMA around R49. The sto broke and stayed above the 200w EMA. Using height of the cup the target is R74

Account Summary on 9 May 2021

Capital invested: R9000

Current Balance: R7273.1 -19.19%

Current Equity (Balance including paper P&L): R11378.2 +26.42%

Current P&L : +R4105.1

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