Stocks in play 2 August 2021

The JSE market looks quite strong this week. We could see the top40 finally breaking through the 63k points resistance. Commodities look like they are going to lead this next phase of the bull market. We see strong numbers coming from the sector and giant dividends being announced. The banks are also looking like they’re ready to run as well. A similar theme amongst the retailers. Overall looks like it’s going to be a rather positive week in the market in the market week.

That said, here’s a run through this week’s stocks in play

Absa

Daily chart.

The tug of war continued the past week with the stock holding the R137 resistance level. Leading to the week’s close we did have the three white soldiers pattern (3 consecutive green higher closes). If the stock can take out the R137 resistance and close through the 136.92. I will start building my position, with a R126 stop loss. The level I’m mainly watching is the R147 level.

African Rainbow Minerals

It was a rather strong week for the resources stocks this week. ARI looks well poised to make new record highs. The stock closed the week off with a nice bullish engulfing candle. I’m waiting for a new record daily high close above R303.65 to add to my position.

Aspen

Daily chart

What a week it was for Aspen the stock up about 6% in the week. Moved to a shier R174 – R184 box. Doesn’t seem like it will stay in this box for very long. If we get a close above R184 I will add to my position .

BHP

Daily chart

Like all resources stocks BHP also had quite a week, continuing where it left off the prior week after holding the 50 day EMA. If the stock can make a new record high close above R491 I will add to my position with a R426 stop loss

Bidvest

Daily chart

The stock had a stellar week, the stock quickly taking out the R198 resistance level. I pulled my stop to R184.99 just below the 50 day EMA. I will add 1.2 shares to my position market open on Monday 2 August 2021

Richemont

Daily chart

The stock looks quite poised to continue its run. Holding the base of the R185 – R194 box. If the stock closes back above the R189.60 I will Add to the position, trailing my stop loss to R180. Then wait at the R194 station.

Exxaro

Daily chart

The stock ran to some sellers again at the R184 level. The stock recently held the 50 day EMA, continuing making higher lows. The ascending triangle pattern completing a 23 long week Head and Shoulders pattern. If we can break above the R184 neckline I’ll add to my position with a R168.70 stop loss

Firstrand

Daily chart

Banking stocks are starting to look good again. Buyers seem to have won the battle at the 50 day EMA. I’m going to start building my position at the open on Monday 2 August 2021. I’m going to buy 23 shares will an initial stop loss at R50.82. I’m also watching the following key levels R55, R56, and R57 to build the position. R50.82, R51.60, & R53 being defence prices on the way up

Foschini

Daily chart.

I got a tad bit aggressive on raising my stop after the gap higher. When the stock broke out the bull flag. I pulled my stop to just below the lows of a bull flag, but didn’t add to the position I wanted to wait for a close above R163, because it was a high close, too close by. I should have given the stock a bit more room and kept the stop low the low of the gap candle unit the stock takes out the R163 level. I was still going to be in profit on the trade, as a result I cut a winner short. Lesson. Always give your winners some room. What’s the risk? Making a bit less? So No, give them some room to rest. Especially if the ran pretty quickly

I’m now waiting for a close above R163.41 I will just back in the trade with an initial stop loss at R147.60

Glencore

Daily chart

The stock moved back to test and hold the base of it’s new R64 – R71 box. If we get a close back above R67.18 I will add to the position with a stop loss to just below the 50 day EMA at R62.50

Impala Platinum

Daily chart

The commodity run continues with Impala joining the party repelling the 50 day EMA. If we get a close above R270 I will add to my position with a stop loss at R242.40, Then wait for the R293 resistance.

Life health care

Daily chart

We had a nice doji candle on Tuesday 27 July 2021, the stock has since moved higher. Forming the handle of the cup and handle pattern developing. We could see the stock take out the R24.50 neckline. At which point I will add to my position with a stop loss at R22.70

Mr Price

Daily chart

The stock moved quite nicely after breaking from the down chanell. With a close back above R220 I will add to my position raising my stop loss to R203

Nedbank

Daily chart

It was quite a positive week for Nebank this week. After the Stock shrugged off the 50 day EMA, ending the week wing a nice nice string bullish engulfing candle. I’m now waiting for a close above R174.70 to add to my position.

Nepirock

Daily chart.

There’s a fair bit of seling at R15.40 holding the stock off. If we can get a close through the R15.44 resistance I will start building my position. With a stop loss at R14.70, and again above the R15.89 level.

Northam platinum

Daily chart

Northam is back above the 50 day EMA, after holding the 200 day EMA. I’m waiting for a close above R273.20 to start building my position with an initial stop loss at R205

Pepkor

Daily chart

The stock finally took out the R20.90 resistance level closing Friday at R21. I moved my stop to R19.55 and I will be adding 31 shares to my position at the open Monday 2 August 2021.

Shoprite

Weekly chart.

The stock formed a nice base at the COVID-19 crash. Shoprite is arguably the strongest retailer in our market. Nice ascending triangle pattern staying on the right side of the 200 week EMA. I’m watching the R162 level quite closely.

Daily chart

A slightly faster paced ascending triangle pattern forming on Shoprite. I’m waiting for a break through the R162.50 level to add to my position and trail my stop loss to R153.50 just below the 50 day EMA.

Sibanye

Weekly chart

Nice looking bullish flag on Sibanye the stock holding off the 50 day EMA. The stock looking quite healthy at the moment.

Daily chart

If the stock can break out of the flag and close through the R66 resistance level. I will add to my position with a stop loss around R58.

Woolies

Daily chart

The stock looks well poised to take out the R55.80 resistance level. If we do get a close through the R55.80 I will add to my position, with a stop loss around R53 just below the 50 day EMA.

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