Stocks in play 11 July 2021

There are times in the markets, when the good thing to do is frankly nothing. The 40 pretty much flat the past 4 week. The index stuck between 63k and 59k points. With the broader market flat like that. Opportunities dry up. Forcing trades in these kinds of markets will only cause damage to the pocket book and mental capital.

A few stocks remain in play though. With a chart pattern looking rather bullish in the face of a weak market.

Distell

The stock has been flat since the end of May. Stuck between R172 – R163 range.

Looking at the daily chart

Looks like there’s a fair bit of buying happening around the R145 level. We had a nice kangaroo tail on Friday. We could see the stock move back to the R172 resistance. If the stock can break out of this range. I will move my stop slightly higher to around R161.

Dischem

The stock looks fairly strong. Perhaps the vaccination roll has something to do with it. There’s quite some selling at R32.50. If we can get through this level I’ll conclude the stock is moving to a higher box. I have a +5% risk on the trade. WIth a close through R32.53 I will add to the position and raise my stop slightly to R30.44.

Life healthcare

The stock looks quite strong holding the 50 day EMA well as support. Friday close was a nice bullish engulfing candle. I have a -0.79% risk on the trade. If the stock can get through R23.44 I will move my stop to R22 raising my risk to +1.17% I will add a 1% risk on the position to the trade.

Pepkor

I got stopped with a nice 6% profit on the trade as the stock tested the 50 day EMA. Looks like the 50 day EMA is holding as support. If the stock breaks back above R19.40 I will jump back in the trade with a nice tight stop just below the last swing low. Around R18.60.

Shoprite

The stock tested the 50 day EMA. After a cup and handle breakout didn’t happen. Friday was a strong day in the market for the stock. With a nice strong bullish engulfing candle. I we get can through R162.60 I will add to my position with a stop loss around R151.50

Truworths

Like a dancer crouching before a scraping. Pepkor looks ready for the next spring. If the stock moves back to the higher box with a close above R60.50. I will add to the position with a stop loss around R56.

Account Summary on 18 July 2021

Capital invested: R10 303.77

Current Balance: R8 209.62 -20.324%

Current Equity (Balance including paper P&L): R13 081.4 +26.96%

Current P&L : R4 871.78


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