Stocks in play 5 September 2021

I don’t think the top 40 index is going to do anything special for as long as it’s below 63.5k. Currently having a tough time with the 50 day EMA. Staying on the wrong side of the moving average. With the broader market being stuck in a range, opportunities for trending stocks dry up as well. Patience will be of high importance.

Let’s have a look to some stocks in play

Absa

The stock found resistance at R158 the past week and a bit more. Friday closed with a doji reversal candle. An old resistance seemingly holds as support. If the stock makes a new high close with a close above R158.22. I will raise my stop loss to R146.20. If the volume increases significantly I will raise my stop to R149.45 and add to my position.

Aspen

When a stock starts to move to new multi year highs. I like drawing boxes inspired by Nicolas Darvas. Aspen has been breaking to higher boxes with relative ease. The stock is currently within the R184 – R200 having just got in it recently. At the moment Aspen is at holding status. Waiting to see how the stock will behave around R200. If the stock breaks R200 it’s time to buy the stock again. While being on the lookout for continuation patterns between R184 – R200. Not forgetting a stop loss be R184 – R200 after the breakout.

Bidvest

The stock held the 50 day EMA as support after a couple days of selling. If the stock break

back above the R207.90 I will raise my stop loss to just be low the Friday low at R194.70 then add to my position.

Distell

Market looking optimistic about the Heineken deal. The stock started off slowly on the update, then started to run on results. Moving into the R172-R182 box. I raised my stop loss to just below the 50 day EMA. If the stock breaks the R182.66 level and moves into the higher box. I will raise my stop to R176.95.

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

MTN

The stock has been consolidating over the past couple of weeks. Forming a horizontal bullish flag. if The stock breaks the flag’s resistance at R133.62 with improved volume I will raise my stop loss to just below the low of the flag around R127

Sanlam

The market seem 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.

Sappi

The stock found some support at the 50 day EMA. If the stock can break the R45.23 resistance would confirm the double bottom. I will raise my stop loss around R40.40.

Shoprite

The stock tested the doors of the higher box and slipped back. Friday closed off with a bullish engulfing candle . If the stock moves back to the higher box with a close above R184.43. I will raise my stop loss to around R177.70 and add to my position.

Account Summary on 5 September 2021

Capital invested: R10 303.77

Current Balance: R6 480.05 -37.11%

Current Equity (Balance including paper P&L): R17 150.04 +66.44%

Current P&L : +R10 669.99

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