Finance
The banks we sold off as a collective the past couple of weeks, after having a strong rally. Most are now building reversal patterns. Expecting a turn in the market on our Banks
Resources
Resources stocks look very bullish at the moment. Oil run certainly helping Sasol break through R300.
So far one stock has triggered a buyin Aspen
This week’s stock in play
Absa
The stock ran into some selling around the R165 level. This level has been a strong area of supply and demand. Coming back to test the old resistance from above and holding it. The stock could find itself range bound between R158 – 165. This means a break above R165 becomes a significant one. Triggering a buy.
Capitec
Buyers holding the 50 day EMA with a bullish engulfing. The decreased volume concerns me a bit, so I will wait for confirmation. A close above Friday’s bullish engulfing. To jump back in the trade.
Nedbank
The market came back to test the R180 old resistance. There are reversal candles, different variations of the doji candle. I’m expecting some buying to come in and hold R180. However I will wait for a close through R188 to raise my stop loss to around R177
Investec
The stock entered an area of supply and demand on Friday. I’m going to look for a reversal pattern around the 50 day EMA. Good place to “Buy the dip”. I’m going to wait for a break above R90 to raise my stop loss to just below the 50 day EMA.
Discovery
We had a reversal candle on Wednesday touching the 50 day EMA. If the stock makes a new relative high close above R149. I will raise my stop loss to just below Wednesday’s low at R140
Rand Merchant
We at the tail end of an ascending triangle R47.20 service as the top line. On that break I’ll raise my stop to R44.70. It’s a buy for a R52.95 target.
Afrimat
The stock respected the R61.30 resistance, and so far holding the R57 old resistance as support. Forecasting a reversal pattern this week. I’m going to wait for a break above R61.30 to start building a position on the stock.
Glencore
The stock found some selling at the top of the current box with a bearish engulfing candle, followed by a bap lower. However, the Friday candle was a reversal doji. Forecasting a 5% rise in the week to retest the R88 level.
Goldfields
The market violated the R157 support a bit but gapped back above the 50 day EMA. The problem with this trade is that it is closely correlated with the price of gold. At the moment gold is range bound. Increasing the likelihood that gold miners will be range bound as well. If the stock breaks above R157 I will start to build a position.
Renergen
Renergen had a great run last year. We had a golden gross, I’ve been looking at the stock for my small cap long term portfolio. The chart looked good so I decided to add to the list of stocks I trade. If the stock enters the higher box above R40 I will build a position.
Sasol
The stock came back above R300 for the first time since. Oil prices are surging. I’m forecasting a 21% rally to R377. I will be building my position as the stock moves higher.
Retail
Mr Price
We had a gap and drive breakout on Friday. The kangaroo tail worries me a bit. It could be a false break or at least come to close the gap before running. If it’s a valid breakout. I forecast a 9% rise to R327.
Shoprite
We had a bullish engulfing candle on Friday. Around the 50 day EMA. I’m waiting for a R211 resistance to break. To add to my position.
Pepkor
Came back above the 50 day EMA. I believe the stock run up to the R26. I’ll build my position. I’m waiting for a close through R26 to load up on the position..
Truworths
The stock did the typical break and retest pattern. Holding strongly with a bullish engulfing candle. I’m waiting to see how the stock will react to the R61.45 level. I think if the stock breaks R67 the stock will surge
Others
Aspen
The 200 day EMA was like a hot stove for Aspen. Which was followed by a bullish engulfing candle, which confirmed with a green close the next day. This is a support of a 30% wide range. Toppling at R275. I will start building a position at the open on Monday.
BAT
They woke up from the dead. After being sideways for a long time. Breaking the above the 200 week EMA. The stock continued to make new 52 week highs. If the market breaks above R668.50 I will add to my position.
Bidcorp
The buyers held the 50 day EMA, still having a tough time with the R335 resistance. The stock has been making higher lows. If the market breaks R335.77, I will build a position with an inital stop loss at R319.54
MTN
Buyers came in to defend the 50 day EMA. Continuing building the ascending triangle pattern. I’m waiting for a close above R175.35, to add to my position.
Satrix40
The index reverted back to the 15 day EMA closing below it on Friday. Now I’m wait for a buy trigger. Which a close back above the 15 day EMA.
Portfolio Summary on 2 March 2021
Capital invested: R10 303.77
Current Balance: R9 344.15 -9.31%
Current Equity (Balance including paper P&L): R18 727.02 +81.75%
Current P&L : R9 382.87
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