Stocks in play 8 November 2021

The market came back alive. We saw a few stocks making big moves this past week. Market looks like the buying will continue into the coming week. The top40 index doesn’t seem to budge. Being dragged by the big miners & Naspers. Opportunities are sitting outside of the top 40 at the moment or at least at the tail end of the index.

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

Capitec

Old support was pierced but was held as the stock closed just below the old support. The price preceding price action does however suggest that the stock was perhaps saved by the bell on Friday’s close. If the stock breaks the old support. What triggers a buy with a short term target at R1909, and a stop loss just below Thursday’s doji. However I’m expecting the stock to perhaps come back to retest the 50 day EMA before breaking.

Richemont

Darvas’ boxes are stacking up again on Richemont. The stock power through the R183 – R198 box tested the doors of the higher box slightly on Friday but closed just within the current box. If the stock jumps to the higher box I will add to my position and raise my stop loss to just below the R189 old resistance. I’m expecting the stock to retest the R198 and hold it as support. Before breaking to the higher box

Clicks

We still have a tug of war around the 50 day EMA but the stock staying on the bullish side of the moving average. Staying around the buy area. I have a short term target of R197 and R307 with a stop loss between R266 and R281. I have mine at R266.30

Coronation

Buyers seem to be winning the war around the 50 day EAM. The stock staying on the long side of the moving average. Waiting for a break out above R52.60 with short term target at R56 and a stop loss at just under R50

Dischem

The company published interim results. HEPS up 35% and they brought back dividends. The market loved the results. The powered through a couple of boxes. For now I will wait for a close above Friday’s close. We we get a close another green close I will raise my stop loss to R33.57 and add to the position

Long term analysis here

Distell

Looks like I’m gonna have to wait a little longer for the R190 breakout. As the stock looks like it’s building an ascending triangle pattern. Held the 50 day EMA this past week holding the support slope. There’s a long short term trade with a tight R177.50 stop loss and a R190 target or hold part of the position waiting for the R190 break out

Foschini

The stock is starting to look slightly strong. Buyers look like they are coming back to the market. The R125 old resistance held so strong it was only tou1hat’s a buy trigger with a R125.50 stop loss and a short term target at R161

LIfe health care

The R24.90 resistance proves to be quite resistant. Albeit remains bullish looking like a crouch before a jump. If/When the R25 close I will raise my stop loss to R23.30 and add to my position

Mediclinic

The stock came back to test the old resistance. So far its holding. With a doji on Friday. Providing a buy opportunity. Although waiting for a green close above the high of the doji. There’s a long short term trade with a R77 target and a R68 stop. I will however wait out for a close through the R77 old resistance. Before raising my stop loss to R68

MTN

The stock hit the ascending triangle pattern target within a day of the trigger. Lots of updates coming from the company, the market loving all of it. I will now waiting for a close through then I will raise my stop loss to R151.90 which will officially make MTN my biggest winner from jumping Distell. As my profit will rise to +95%

Sappi

The stock took out the downtrend resistance line. Currently floating mid with a short term consolidation. Testing the R47 resistance. Friday closed with a bullish engulfing candle. Increasing the R47.60 resistance being taken out. At which point I will raise my stop loss to R44 and add to the position. Short term target at R50.80

Shoprite

Shoprite moved to the higher box on Thursday. I raised my stop loss to R178 just below the 50 day EMA. The stock came to test the base of the new box and held it. We don’t know if it was on its way back and it was saved by the bell. Remains in the buy zone for a longer term hold. The stock broke out at a long term base.

[Weekly chart]

Telkom

The stock had a strong bullish break showing the 200 week EMA some tail lights. I have a target at R81 with a stop loss at R49.60. The target will take an age to get there but looks like a target the stock can easily reach.

Transaction Capital

The stock moved to the higher box slightly and created a worrying doji, but a new high close is more important information for me. I cautiously raised my stop to R40.69 a fair distance away below the 50 day EMA . I will add another 1% risk to the position. Raising my stop loss bags a +3.68% profit

Vodacom

The stock re-broke the R138 resistance after violating from above Only to hold the support of the up trendline. The stock is back above the 50 day EMA. I will rebuilding my position in the stock with an initial stop loss at 133.90

Portfolio Summary on 2 March 2021

Capital invested: R10 303.77

Current Balance: R5 575.73 -45.89%

Current Equity (Balance including paper P&L): R21 149.84 +105.26%

Current P&L : R15 574.11

Equity curve Vs Benchmark (Satrix 40 ETF )

Closed trades statistics and distribution

Open trades statistics and distribution assuming all stops are hit

Thank you for 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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