Our top 40 index is still range bound. The last sell of didn’t quite reach the base of the range. Still having a tough day with the 50 day EMA so don’t get too excited. But when looking into the single stocks there’s quite a bit of stocks setting up quite nicely for the next phase of the current bull run.Only time will tell.
Now let’s look at this week’s stocks in play
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.
BHP
Commodity stocks were a subject of some heavy selling despite many of coming out with strong results. BHP was not spared, The stock did make a new high but failed to make a new high close. The stock has since formed a bullish flag. Holding the 50 day EMA in the last low of the flag. If we can get a break out of the flag with a close above R466.90 . I will add to my position with a stop loss just below the 50 day EMA . Just below the bull flag. Then wait for a new high close above R491.80
Bidcorp
Since my last purchase of the stock at R320the stock tried breaking the R322 resistance twice without success, albeit higher lows. Holding the 50 day EMA quite well as support. If the stock closes through R322.80 I will add to my position and raise my stop loss to R309.70
Clicks
The stock moved decisively into the higher box after holding off at support for a little bit. Increasing volume while at it. I moved my stop loss to R282.45 increasing profit to +2.8% and will be adding to my position at the open Monday 30 August 2021.
Coronation
There’s still a bit of indecision on Coronation. Buyers and sellers seem to be about equal in strength. Albeit seem to be slightly stronger buyers 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.
Distell
Came with impressive results this past week. The company however didn’t declare a dividend, citing the Heineken deal negotiations as a reason. The stock sold off slightly at the back of the announcement of results, recovered with a nice bullish engulfing candle continuing to hold the 50 day EMA. If the stock closes through R173.80 I will raise my stop loss to R164.90. Ordinarily I would add to the position. Since my last bet on the stock was a 5% bet I will wait for my stop loss to be above the last buy. I will add to my position with above R182.50
Exxaro
Nice broad inverse Head and Shoulders pattern the stock hanging on to the 50 day EMA. I’m waiting for the break of the neckline with a record high close above my last purchase at R185.52. Then I will raise my stop loss to R167.70 and add to my position
Firstrand
The market closed at R59.91 on Friday. I raised my stop loss to just below the 50 day EMA at R55.90 reducing my risk on the trade to -0.16%. I will be adding to my position on Monday. Then wait for a close above R62,60
Life Health care
Since my last buy at R24.60 reacted modestly to the down side. Not coming anywhere near my R22.76 stop. and holding above the 50 day EMA. We had a nice bullish engulfing candle on much lower volumes. Characteristic of a consolidation period. If the market closes back above the R24.60 I’ll raise my stop loss to R23.32 Just below the 50 day EMA and add to my position.
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. 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 R128 stop.
Nedbank
Nedbank finds a bit of strength again. Holding the 50 day EMA with a nice bullish engulfing candle. If the stocks makes a new 52 week high daily close above R188.25 I will add to my position and raise my stop to R167.35
Old Mutual
The stock started to test the R15 resistance level. I’m going to wait for a high close above R14.80 then raise my stop loss to R13.55 and add to my position
Pepkor
The stock came back to the top of the lower box. We saw a Thursday closing with a nice small doji candle. Followed by an engulfing candle on Friday. When the stock breaks back above the R23.06 I’ll raise my stop loss to R21.50 and add to the position.
Pick n Pay
Pick n Pay seemingly starting to gather a bit strength. We had a golden cross and the stock is at the top of the range its been for the past year and a bit. If the stock can make a new 52 week high daily close above R58.50 I will start building my position on the stock
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
Nice doji candle at the close on Friday. on declined volume. I’m going to wait for a close above R183.85 then I will raise my stop to just below the doji around R176 and add to my position
Woolies
The stock had a strong breakout on Friday closing at R63.56. I raised my stop to 56.92 Trade moving to risk free opportunity. I’ll add to my position on Monday morning
Account Summary on 30 August 2021
Capital invested: R10 303.77
Current Balance: R6 947.45 -32.57%
Current Equity (Balance including paper P&L): R17 130.47 +66.25%
Current P&L : +R10 183.02 +146.57%
