Stocks in play 10 October 2021

Top 40

The top40 index had a decently quiet run. To test the 200 day EMA. So far stopping a potential death cross. Let’s see that this week the market will crack the R59k old support. However the index is unlikely to do anything special below the 63.5k resistance. For some returns the top40 stocks aren’t the place to be looking at the moment. Albeit a few still offer some opportunities. The index is seemingly held back by the PGMs. They did show recovery this past week. Let’s how can they run

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

Absa

The stock held the uptrend channel as the stock stays on the right side of the 200 week EMA. The R154 level held its ground as resistance. The stock did at the same time hold the longer term old resistance as support.

We could see the stock bounce off the longer term resistance to retest the daily 52 week high close at R158.22. I will wait for the stock to make a new high close though R158.22. This is probably going to take some time.

Richemont

The stock is an ascending triangle pattern holding the 200 day EMA. After a 20% pull back to just under the 200 day EMA. I’m waiting for the stock to come back above 50 day EMA and the R164.50 topo of the triangle.

Coronation

The market sold off the stock the past couple of weeks. Buyers did however defend the 50 day EMA. I’m waiting for a break above R52.54 to start rebuilding my position. With an initial stop loss just below the 200 day EMA. Then wait for the break through the R56.

Dischem

We had a bullish divergence with the low still holding the R28.40 from September to date. Back above the 50 day EMA. If the market closes through the R31 old support. I’ll raise the stop loss to R29.50 just below Thursday’s low R19.58. Then wait for a new high close above R32.40.

Distell

There’s some selling at the R189 level at the moment. Depending on how the Distell makes a new 52 week high daily close. If the stock takes out the high of the doji and closes through R192.92. I will raise stop loss to R184. And add to the position. If it makes a new high close above R189.95. I will raise my stop loss to R180, I’ll also be monitoring the 50 day EMA at that time.

Exxaro

This stock has been quite volatile in a directionless manner pretty much since that April Dividend. Albeit spending the majority of the period above the 200 & 50 day EMAs. The R190.71 high close is the price to contend with. If the market makes a new high close above that price, I will jump back in, but this time give much more room just in case it falls back into volatility and noise. With a stop loss just below R146.16 May 26 low. I will raise the stop if the stock really gets on the run.

Firstrand

The stock has been on the run pretty much since that gap and drive of August 5th. Sold off just over 7% the past couple of weeks. Friday close holding the uptrend channel support. Now I don’t know whether the stock was saved by the bell or buyers or came in just before the close. Will see in the coming week which one is true. Also monitoring the 50 day EMA. To see if there’s some psychological buying. I’ll be waiting for a new 52 week high close. Above R64.23. If the 60.34 low hasn’t been taken out. I will raise my stop loss to R59.90

Foschini

The market came with a strong trading update. Citing the bargain purchase of jet stores. Management expects a more than 100% increase in HEPS and 50% increase in EPS. Albeit base effect

The price came to this looking bottomish. Holding the 200 day EMA tightly staying above it. With a bullish Divergence. Let’s see how the market takes the news in the coming week. If the market takes out the R141.26 resistance, closing back above the 50 day EMA. I will start to build a position with an initial stop loss just below this past weeks low at R131.10

Glencore

The stock is well established in the R68 – R77 box. Which it entered with a gap and drive pattern. I want to see how long this R75.28 high close holds without taking out the October 1st invented hammer low. At R70.56. If the high close holds for longer than a couple of weeks. When it is taken out I will add to the position. Raising the stop loss to R67.46. For now I will wait for a close through R77.30

Growthpoint

We have a bullish divergence on Growthpoint. As the stock looks to challenge the 200 day EMA from below. I’m waiting for the stock to come back above R14.57 to start building up a position here. Then wait for the R15.77 breakout

Investec

The stock dipped back into the lower box slightly. Not by very much. R66 proved to be a hard nut. If the market takes out this level. I will raise the stop loss to R60.60, and add to the position. If it continues to fall I’ll be monitoring the 50 day EMA for some psychological “dip” buying.

Momentum Metro

The stock jumped to the new box after being stuck in a range since May. Let’s see if it will stay in the current box for long. I’m waiting for the stock to move to a higher box with a close above R22.20

Mr. Price

We have bullish divergence as the stock dances with the 200 day EMA. The company reported 48% growth in retails 48% growth. Power fashion investing accounts for 20% of that growth. I’m waiting for a close above R213.05. To start building up a position. Then wait for a close through R237.76

Pepkor

The stock recovered from Steinhoff discount sale. It did however remember the R23 resistance. Going to wait for the stock to take out the R23.06 to add to my position and raise my stop loss to R20.90.

Sasol

The stock got going after closing through R250. Let’s see of the market will remember the R305 level. I’m for the market to close through R305. I will add to the position. And raise my stop loss to R263.70

Telkom

The company came out with a trading update about unbundling the towers business, and intention on unbundling Openserve as well. I’m waiting for a close through R49.71. To add to my position.

Account Summary on 10 October 2021

Capital invested: R10 303.77

Current Balance: R6037.70 -41.2%

Current Equity (Balance including paper P&L): R20 499.23 +98.95%

Current P&L : R14 422.02

Equity curve Vs Benchmark (Satrix 40 ETF )

Closed trades statistics and distribution

Open trades statistics and distribution assuming all stops are hit

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