Stocks in play 18 October 2021

The past couple of weeks have been largely one of those “sit tight and do nothing” type of weeks. The market is starting to look a bit better. The top40 index is back above the 50 and 200 day EMA. Still a long way to the 64k resistance. Which is break would likely trigger a bullish run.

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

Aspen

Markets have a memory. That axiom was proven true in the case of Aspen. The stock broke a significant level of memory. Breaking the R240 level. The market came back to test this level. R240 held quite well this past week. We eventually saw some psychological buying at least face value. We could see the stock run back up to the R273. Waiting to see if the market remembers that high close.

Astral Food

We have a nice ascending triangle pattern. The market has been testing the R186 resistance all week. Waiting for a breakthrough that level.

Barloworld

The stock spent the past couple of weeks breaking and holding the R125 level both as resistance and holding it as support. Once the weight of the market is off the stock will run up to break the R132 level I’m waiting for.

Richemont

The stock came back with a bang. Once closing through the 50 day EMA. Let’s see if the market will remember the R177.50 level. If the market can break through that level. I will raise my stop loss just to just below the 50 day EMA. I’m waiting for a break of the R189.

Clicks

We have a bullish divergence as the stock holds the 200 day EMA. Waiting for the stock to back back above the 50 day EMA. I will rebuild my position. Then wait to see if R306 level will hold

Dischem

The stock moved back into the R30- R32 range. Showing the 50 day EMA some tail lights. I raised my stop loss to R29.49 just below the 50 day EMA. I’m adding to my position at the Open on Monday 18 October 2021. Now waiting to see if the market will respect the R32.40

Glencore

The stock jumped to the higher R75 – R86 box with a gap and drive pattern. Anticipating the stock to test and retest the R75 base.

Investec

The stock cement itself in the higher box. After staying at the base of the box and dipping to the lower box as well with a Gap and drip break. I raised my stop loss R60.78 raising the profit to +2.98%. Entering into risk free opportunity. I adding another 1% risk to the position

Life Health Care

The stock slipped below the 50 day EMA. Sandwiched between the 50 & 200 day EMA with a bullish Divergence. Closing the week with a bullish engulfing candle on Friday. Waiting for the stock to come back above the 50 day EMA. To rebuild the position

Mediclinic

The stock gapped and drove after a trading update indicating the company saw a 12% increase in revenue from pandemic levels. The stock has been pretty flat for sometime now. I’m going to start building up a position in this stock starting on Monday’s open. With an initial stop loss at R61.20

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

Shoprite

The stock held the 50 day EMA bouncing off it like a hot stove. I’m waiting for the R184.90 and the R190 levels to break to build up my position

Portfolio Summary on 18 October 2021

Capital invested: R10 303.77

Current Balance: R6 036.61 -41.41%

Current Equity (Balance including paper P&L): R18 681.4 +81.31%

Current P&L : +R12 644.79

Equity curve Vs Benchmark (Satrix 40 ETF )

Closed trades statistics and distribution

Open trades statistics and distribution assuming all stops are hit

Thank you reading and reaching this far. If you have questions or chart requests or want/need someone to bounce ideas off of feel free to drop me an email: njabulo@villagetrader.co.za

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