Stocks in play 26 September 2021

The market sprung back to life this past week. We saw the top40 index up a little under 5% during the course of the week. Aspen is one of the stocks that moved sharply the past week. Looking well poised to continue that rally. The top 40 index still has the 300 day EMA to deal with this coming week. We could see a bit of resistance around the 59k level. I’m bullish on the JSE this week particularly the midcaps and financials.

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

Absa

The stock sold off a bit after ex-div slipping below the 50 day EMA. Looks like the market has shaken off the ex-div price adjustments. The Thursday close was a bullish engulfing testing the 50 day EMA. There’s a resistance which used to be support at R145.20. I’m going to wait for a close through R145.20 to start rebuilding the position.

Aspen

The R240 has been an area of strong support and memory in the past. The market didn’t have much respect for this level recently, only testing a few times and powering through closing on Friday at R249.77. I moved my stop loss to R218.18 raising my profit on the trade from up 15% to up 20%. I will be adding to my position. Putting on a 3% risk because the profit on this trade is now sitting at +20%

Barloworld

The market sold off the stock and it was saved by the 200 day EMA. On Thursday the stock came back above the R102 support. and back above the 50 day EMA. I will start building my position on Monday. I’ll add to the position if we go back above R110.

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 did indeed break out in reverse. If the stock breaks above R52.55 I will add to my position.

Firstrand

We have an ascending triangle pattern with the R62.83 being the top base. If the market closes through R61.80 I will raise my stop loss to R58.10 just below the 50 day EMA.

Mr Price

We had a bullish divergence as the stock came to test the uptrend support and holding the 200 day EMA. I started building up a position. When stock closes back through the 50 day EMA. I will add to the position. My goal is to still have my position when the stock breaks through R237.

MTN group

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. The stock broke through the R133.75 resistance. I raised my stop to R118.69 raising my profit to up 28% from up 12%.

I will add again if the stock breaks through R139.50

Nepirock

The stock keeps finding sellers at around the R105-R106 area. We a had a few intraday breakouts but closed the day back below the resistance. The last sell off was at ex-div. If the stock closes through R105.92 I will raise my stop loss to R100.80 just below the 50 day EMA.

Pepkor

Steinhoff sold quite a chunk of their Pepkor shares in the open market at a discount. The market nonetheless like the stock. The market looking its closing the gap. On Thursday the market test the 50 day EMA from below. When the stock closes through the 50 day EMA as it reenters a higher box. I will rebuild my position

Sasol

The stock broke the R240 level and ran into some selling at R250 since April 2021, but the stock held both the 50 & 200 day EMAs. The market remembered the R250 level again testing it on 16 September 2021. If we can close above the April 2019 close The doji that proved to be the undoing of the rally would then confirm the trade

Account Summary on 2 March 2021

Capital invested: R10 303.77

Current Balance: R6152.39 -40.30%

Current Equity (Balance including paper P&L): R19 506.16 +89.31%

Current P&L : R13 353.77

Closed trades

Performance Vs Benchmark (Satrix 40 ETF)

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