Stocks in play 9 August 2021

Certainly our JSE is looking quite bullish at the minute. The top 40 index staying well abve the 50 day EMA. 63k seems to be a graveyard in the sky. If the market can break free from the range. We could be in for a bull run for a few years. Number of stocks building solid base

Here’s a run through this week’s stocks in play

Absa

A gap and drive pattern on the stock on increased volume on Thursday 5 August 2021. Taking out the R137 Resistance. I started building my position on the stock.

Weekly chart

That break was a significant weekly chart cup and handle pattern I had been waiting for a while. The 200 week EMA held quite strongly as support.

Daily chart

The stock also took out the R147.70 resistance level, a level I was eyeing to add to my position. I will now wait for the stock to take out R164 resistance level, then I will add to my position. Unless the market gives a lower resistance between now and then.

African Rainbow Minerals

The stock did make a new high close on Wednesday 4 August, but only by a bit. Missed the ATH by a few cents. I decided to wait for another green close. Which hasn’t materialised as yet. I will wait for a close above the ATH price R306.78. Then I will add to my position with a stop loss around R284

Amplats

The market seems to again respect the R1922 level as it did before. Holding as resistance this past week. I was looking to add to my position around the R2010 level. With the past week’s price action I will add to my position if the stock takes out the R1922.40 resistance level. Pulling my stop loss to just below Friday’s low around R1824.40

Aspen

The stock ran into a bit of selling around the R181 area. Looks like the consolidation could be near its end. The stock closed the week off with a nice bullish engulfing candle. I’m still waiting a close through the R184 level. Then I will add to my position with a stop loss just below around R174

Barloworld

Looks like a cup and handle pattern is forming on Barloworld. The stock looks like it’s working on the handle. As it holds the 50 day EMA. I was waiting for a close above R114. However I will now add to my position on the break above R110.80 with a stop loss just below the 50 day EMA/ Handle.

Bidcorp

The stock ran into some selling after holding the 50 day EMA as support around the R322 area. The stock closed the week off with a nice doji candle. I will add to my position when the stock breaks the R322 resistance level. With a stop loss just below the doji candle and just below the 50 day EMA around R311

Capitec

The stock looks ready to move to a higher box. I’m simply waiting for a close above R1727 then I will add to my position with a stop loss around R1615

Richemont CFR

Looks like the buyers are back. With nice strong green close to close off the week after a doji candle. as buyers absorb sellers taking up all the stock sellers were offering. I’m now just waiting for a close above R189.60. Then I will add to my position with a stop loss at R180

Clicks

The stock had a nice breakout through the Symmetrical triangle pattern. I’m now waiting for a close through the current high close of R277.89. I will then add to my position with a stop loss of R262.17

Exxaro

The stock ran to some sellers again at the R184 level. It recently held the 50 day EMA, continuing making higher lows. The ascending triangle pattern completes 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

We had a giant gap and drive candle with double volume on Thursday. I was going to add to my position as the stock broke the R56.26 level but I will now just wait for a close above the R57.63 high close to add. With a stop loss R55.84

Glencore

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

Growthpoint

The stock finally took out the R15.05 resistance level. I started building my position. I’m now waiting for a close above R15.75 then I will add to my position

Impala Platinum

The R265.90 resistance held again. The market came back to test the 50 EMA. I’m now waiting for a close above R265.90 to add to my position with a stop loss at R240.20

Investec

The stock held the 50 day EMA strongly as support. I’m waiting for a close above R57.47 I will add to my position with a stop loss just below the 50 day EMA at R52.83

Kumba

The base of the stocks new box held . There’s quite a bit of selling R789 level. but the support of the box is consistently holding. I’m waiting for the stock to break back to R789.70. I will add to my position with a stop loss around R745

Momentum Metro

The stock broke out of the symmetrical triangle pattern on Friday 6 August. However there’s a resistance level right above the at R20.43 which again found some selling on Friday. I will wait for a close above R20.43. Then I will add to my position and pull my stop to R18.87

Nedbank

The stock tested the doors of the R187-R200 box with a gap and drive pattern on Thursday 5 August. For now I will wait for a close through R200. However should the stock close the gap since the Friday close brought the stock back to the prior R174-187 box. I will add to the position when the stock breaks back above R187

Nepirock

Still a tug of war on the 50 day EMA R101 holding its ground as a resistance. If the market closes above R101.03 I will add to my position pulling my stop loss to R97.95

Netcare

Nice looking ascending triangle pattern. After a golden cross the stock is building up with a fair bit of wind at the back. I’m waiting for a close above R15.89 to start building my position with an initial stop loss of R14.75.

Old Mutual

The stock looks like it’s winning the battle at the 50 and 200 day EMA. If we can get a close above R13.57 I will start building my position. With an initial stop loss at R12.43. I will add again with a close above R14.77

Quilter

The stock is looking well poised to break the R34.07 resistance. If we get a close above that I will start building my position on the stop with an initial stop at R32.10

Remgro

The stock bounced off the 200 day EMA with a nice bullish engulfing candle. Engulfing the prior 3 days. Forming an inverse head and shoulders pattern. I’m waiting for a break above the R116.58 neckline. This is accompanied by a golden cross.

Sasol

Still a tug of war, buyers and sellers are about equal in strength. If buyers can take out the R230.45. This increased volume of the past few weeks is coming from buying. If the market closes above R230.45 I will to my position with a my stop loss at R210.50

Sibanye

Friday close was a nice doji stuck between the 50 day EMA and the 200 day EMA. I’m waiting for a close above the 50 day EMA and the R64.63 last high close. Then I will add to my position with a stop loss at R59.20. Let’s see if the volume pick up is coming from buying or selling

Transaction Capital

Transaction capital held the 50 day EMA. Now I’m just waiting to see how the stock reacts to the R38.40 resistance . If we get a close through the R38.40 resistance. I will add to my position and pull my stop loss to R35.50

Truworths

The stock looks well poised to move to the higher box. I’m waiting for a close above R61.40 to add to add to my position and raise my stop ever so slightly to R57

Woolworths

The stock gapped into the higher box. Perhaps the gap will close before the stock breaks to the next box. If it breaks before closing the gap I will add to my position with a stop loss just below the low of the gapping candle. Otherwise the of the gap closing candle will be my stop loss when adding to my position above R61.40

Account Summary on 2 March 2021

Capital invested: R10 303.77

Current Balance: R7 401 -28.17%

Current Equity (Balance including paper P&L): R14 960.30 45.19%

Current P&L : R7 559.3

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