Stocks in play 20 September 2021

The JSE has had a tough couple of weeks particularly in the PGMs and gold miners. Dragging the top 40 index along with it. The Chinese crackdown on big tech didn’t help the Naspers. Because of its exposure to Tencent. The top 40 index slipped to a new 2021 lows.

Banks are looking quite strong, midcap and food retailers are also quite strong as well.

Let’s have a look at this week’s stocks in play

Absa

I got stopped last week on this trade as the stock violates the 50 day EMA. It did remember the R141 old support and it was a touching burning stove on Friday and that proved to be the low of the day. If the Friday low isn’t taken out with a new low this week, and the stock breaks back above the 50 day EMA. Signals the end of the -10% correction. I will however wait for a close above R148.10 to rebuild my position.

Aspen

The stock has been rallying strongly recently. Picked up some pace after breaking above the up channel it has been since around June. The R240 level has been a very strong area of memory held quite strong historically as support. Defending the price for many years. If the momentum takes the stock right through the R240 level I will add to my position raising my stop to around R224.50. Once the stock closes through R240 the odds of going back to the R440 highs are improved significantly.

R273, R323, R384 & R440 are strong areas of memory historically. We will see some reaction around these prices as the trend continues.

Astral food

We recently had a golden cross showing that indeed buyers are a bit stronger than sellers albeit not by very much. The R160 level had been like a graveyard in the sky. Until Friday at the back of a trading update. The stock closed R164.04 on Friday. I will buy the stock with my initial stop loss just below the 200 day EMA at R140.80

AVI

We had a golden cross as the stock was not moving very much. It made a big move on Friday at the back of a cautionary statement. about negotiations currently on going but said nothing further from that. My opinion is that there’s a possible buyer and a possible delisting in the horizon but will see in time.

I will start building my position nonetheless with an initial stop loss at R80. to give a bit of room for the market to digest and make sense of that trading update.

Bidcorp

I got stopped earlier this month on this trade as the stock violated the 50 day EMA. The stock found some support at the 200 day EMA after a -10% correction. The stock is now back above the 50 day EMA. I will however wait for a close above R319.50 the high close from March this year. To rebuild my position with an initial stop loss at R298.40 just below the 200 day EMA

Bidvest

We have a nice ascending triangle pattern on the stock, the stock now back above the 50 day EMA. I will start building my position from above R20, however the level that will be of great significance will be the R208 level. We’ll see the stock really start to run if it can close through the R208 level.

Coronation

The symmetrical triangle pattern that fails 2/3rds in turns to fail as a continuation breakout. It usually signals a reversal. That happens to be bullish for the Coronation as the stock holds the 200 day EMA as support.

The stock broke from the triangle on the up side on Friday. I’m Still waiting for a close above R52.55 to add to my position.

Distell

The stock ran into some selling and started consolidating but still making a higher low. The stock test made 52 week highs but failed to follow through. Thursday the stock really looked it was starting to run at point during the day but continued to close below R180 and forming a kangaroo tail which then confirmed on Friday with a close below the doji. However the consolidation range is so narrow it doesn’t worry me. If the stock can invalidate the doji candle with a new high close back above R180.05 I will raise my stop loss to R172.10 and add to my position

Life Health care

We have a beautiful and wide ascending triangle pattern on the stock. The stock continuously makes higher lows. The R25.80 level has been wall above. Market has been trying to pierce this level but it stood strong. If the stock finally closes through R24.82 I will raise my stop loss to R23.90 and add to my position.

Mr Price

The stock fell short a couple of percent of being in a bear market (-20% decline). However the uptrend support held yet again quite close to the 200 day EMA. Providing an opportunity to start building up a position with a tight initial stop loss just below the Thursday & Friday lows, but for a bit of room just below the 200 day EMA around R195. Providing an excellent short term risk reward trade with a R240 target.

If the stock above R204 I will rebuild my position with an initial stop loss at R195.70

MTN

The stock had a -10% correction to the 50 day EMA repelling from it almost as if they were magnets both showing each other the same magnetic pole. If the stock breaks above R133.65 making a new 52 week high close. I will raise my stop loss to R118.20 and add to the position.

Netcare

The medical stocks have been on a quietly non-volatile uptrend recently. With Covid-19 regulation starting to ease off in time. We will likely see the rise in elective surgery, as pent up demand comes back to the market, post vaccination roll-outs . A big driver of revenue for medical stocks. Life Healthcare and Netcare leading the pack. Netcare stock broke out from a short term consolidation on Friday. I will add to my position at the open on Monday. I’ve raised my stop loss to R16.04

Shoprite

The stock reentered the R184 – R194 box on Friday. I will rebuild my position with an initial stop loss at 173.70

Transaction Capital

The stock got going again last week. The to entered the higher box on increased volume. Looking well poised for a short stay in the current R38 – R41 box. If the stock closes through R41 entering the higher box I will add to my position and raise my stop loss behind me

Account Summary on 20 September 2021

Capital invested: R10 303.77

Current Balance: R6 061.13 -41.18%

Current Equity (Balance including paper P&L): R17 130.45 +66.25%

Current P&L : +R11 069.32

Closed position stats.

Open position stats assuming all stops are hit

Performance against the benchmark (Satrix 40 ETF)

Leave a Comment

Your email address will not be published.