Stocks in play 1 November 2021

For this week’s stocks in play I thought I should include more setups with profit targets instead of just writing about my trades with long term plays. I’ve been noticing some short term opportunities when doing my market scan.



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

 

Anglo Gold

We have an inverse head and shoulders pattern, with the right shoulder being slightly higher than the left shoulder. The stock is battling with the 200 day EMA. If the stock can break the 200 day EMA. That would be a buy signal with a stop loss at R262 and a profit target of R378. Assuming R295 as an entry level

Risk R33

Potential reward R83

Risk: Reward 2.5

AVI

We have a bullish flag on AVI. The stock battling with the 50 day EMA sandwiched between the 50 and the 200 day EMA at the back of a golden cross a few weeks ago. If the stock breaks out of the wedge. Closing above the 50 day EMA that would be a buy signal with a stop loss at R76.50 and a profit target of R89. Assuming an R81 buy price.

Risk R4.5

Potential reward: R8.

Risk Reward 1.8

Barloworld

We have an ascending triangle pattern breakout on Barlo. Friday closing with a bullish engulfing candle. I raised my stop loss to R119.29 moving the trade into a slight profit of just under 1%. I will be adding to the position at the open on Monday. Adding another 1% risk on the trade. Bringing me back to around break even on the trade.

Dischem

Dischem looking well poised for a breakout. Still having a rather tough time breaking the R32.40 resistance. A break through this level provides an excellent risk reward opportunity. There’s a head and shoulders pattern. Albeit the left shoulder being a bit longer. With a profit target at R36 and a stop loss at R30.50. Assuming a R33 entry level

Discovery

We have a giant symmetrical triangle pattern on Discovery. We recently had a golden cross on the stock. A breakout from the triangle provides an excellent risk reward opportunity with a stop loss just below the 200 day EMA at R132 and a profit target using the width of the triangle from its broadest point

Distell

Distell came back to test the resistance and held it well as support. Buyers coming to defend the price. I anticipate some psychological buying to occur in the coming week. As the stock held the 50 day EMA as support. For a short term target at R190 and a tight stop loss just below the 50 day EMA around R177

Exxaro

An excellent risk reward opportunity on Exxaro as the stock holds the 200 day EMA with a bullish engulfing candle close on Friday. With a short term target R190 and a stop loss at R158. The stock might find a bit of resistance at the 50 EMA.

MTN

A possible 3:1 risk reward opportunity on MTN with an ascending triangle pattern building up. Short term target at R175, I do however have a longer term target at R250. If the stock can break the R143 resistance. That’d a great buy signal with a stop loss at R132

Northam

We have a golden cross and a flat bullish flag. This price action is also backed by the price action in platinum which is also showing signs of turning to the upside. If the market can break the R235 resistance that’s a buy signal with a profit target at R275 and a stop loss just below the flag around R219. The stock broke down trendline resistance.

Telkom

The stock had a strong breakout on Thursday. Making a new high and high close YTD. Providing a great buy opportunity with a short term target at R56 and a stop loss at R46.40

Transaction Capital

Transaction capital has been stacking boxes up like the pyramid of giza. I tested the doors of the higher box this past week. If the stock break to the higher box by closing through R45 that’s a great buy signal with a short term target at R48. And a stop loss between R40 – R42

Portfolio Summary on 1 November 2021

Capital invested: R10 303.77

Current Balance: R5 800.76 -43.7%

Current Equity (Balance including paper P&L): R17 751.10 +72.28%

Current P&L : R11 950.34

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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