Stocks in play 22 August 2021

It was a peculiar week in our market this week. The broken there for a while on Wednesday only started trading at 14H30. The market had a record volume which was twice the prior record. This was a result of the Naspers & Prosus share swap. The market traded pretty much as normal in the short period that it did trade before closing at normal time. Top 40 drop as well. Still in the 59k – 63k range. Down 6% from the high back to the 59k support. Checkout Simon’s JSE Direct podcast he goes into a bit more detail

Let’s get into this week’s stocks in play

Absa

The stock is dancing with the R147 resistance, and seems to be holding support quite well. The Friday close was a nice doji candle on slightly lower volume. Signalling in decision. A close back above the bullish engulfing candle of the 18th (JSE only traded from 14H30) R153.33. Would signals to me buyers are the strong group. Depending on how it breaks R154.33. I will raise my stop to either R143.60 or R145.70. Then wait for the close above R165.30 to add to my position. This level provided strong resistance for a 3 months period between September-November 2019.

Aspen

The stock tested the doors of the higher R189 – R200 box on Friday but closed back below R189. If the stock closes above R189.20 I will add to my position and raise my stop to R175.30. Then wait for R200

Barloworld

Classic cup and handle pattern. With the cup retraces approximately two 3rds of the prior rally. Both cup and handle holding the 50 day EMA. The handle is stronger than the cup. The stock again is still dancing with the 50 day EMA. I’m waiting for a close above R110.80 then I will raise my stop to R104.50 and add to my position.

Capitec Bank

19 August 2021

The stock moved into a higher box. I raised my stop loss to R1688.88 moving the trade to a little just over break even (+0.11%). I would normally have added to the position however because Capitec’s has a minimum trade size of 1 share. My risk would be -2,5% If i add 1 share to my position. That’s above my max risk on a trade (-2%) so I will pass on adding to the position perhaps if the stock breaks the higher box.

The stock came back into the lower box but stayed at the top of the box. Buyers look like they are still coming in. If the stock breaks back to the higher box and closes back above the R1875.38 record high close. I will raise my stop loss to just below the Thursday & Friday lows. around R1780. Then I will add to my position.

Clicks

The stock moved into a higher R295 – R327 box on Friday. I raised my stop to R276.66 risk +2.55% I will add to my position at the open on Monday 23 August

Coronation

There’s still a bit of indecision on Coronation. Buyers and sellers seem to be about equal in strength. Albeit buyers seem to be slightly strong as shown with higher lows forming an ascending triangle pattern. R49.90 serving as the resistance. If the market closes above R49.90 I will start building my position with an initial stop at R47.68.

Investec

The stock made a new high close on Friday. A higher close was last seen in April 2019. I raised my stop to R55.15 reducing the risk to -0.23%. I will add to my position at the open on Monday 23 August. Then wait at the R64 station. A higher close from a bit earlier 2019.

Life Health care

17 August

The stock today closed at R24.55 above the R24.50 I was waiting for. Volume decreased which is slightly worrisome but not by very much. Raised my stop to R22.76 securing +2.87% risk. I added to my position

I will now wait for a close above R24.75 then I will add to my position with a stop loss at R23.50

Mondi

The stock made a new multi year high close on Friday. I raised my stop loss to R396.86 reducing the risk to -0.63%. I will add to my position at the open Monday 23 August 2021. Then wait at the R439 station

MTN

The stock has been moving quite nicely over the past few weeks. There’s a resistance level between R136-R139 from January 2018. Which the market remembered it. If the market closes above R136.60 I will add to my position. With a R117.60 stop and again above R139.60 with a R126.55 stop.

Sanlam

The market seems to really like the MTN & Sanlam fin-tech venture. The stock ran quite strong since the announcement. There’s some resistance around R64.90 level. If the stock takes it out I will raise my to R59.50 and add to my position.

Shoprite

17 August

The stock moves sets itself back to the higher box closing back abcl R167 strongly closing the day at R170.13 I raised my stop to R158.66 the trade is starting to move to profit +0.84% and added to my position.

I will now wait for the stock to go into the higher box above R173.25 to add to my position. With a stop loss at R164.

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 to R35.74

Account Summary on 22 August 2021

Capital invested: R10 303.77

Current Balance: R7 120.8 -30.89%

Current Equity (Balance including paper P&L): R15 578.8 +51.20%

Current P&L : R8 458 +118.79%

Win / loss distribution

Portfolio unit value equity curve

Performance Vs benchmark (satrix 40)

Closed trades equity curve

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