Stocks in play 13 February 2022

Gold broke out of the symmetrical triangle pattern around the 50 week EMA. If the breakout holds. It will be positive for our gold miners. With Rand looking technically weak. It should att more wind at the back

My Shopping list for 14 February 2022

Here’s this weeks stocks in play

Absa

Absa continued to run, breaking through the uptrend channel on the up side. There’s an old resistance at R183. I expect the market to remember this level. We could see the stock retest the up trend resistance from the other side. I’m waiting for a close through the R183.70. I will raise and maybe add to the position.

Capitec

The stock held the 50 day EMA. Closed Friday bullish engulfing candle, started the week with one. I’m waiting for a new high close. Above R2174.95. I will raise my stop loss to R2015 just below the 50 day EMA

FirstRand

We have a nice and wide head and Shoulders pattern with a higher right shoulder. Completing the pattern with a bullish engulfing weekend breakout. I raised my stop loss to R61.23. Bringing the risk on my position to break even. I will add another 1% risk on the position with 21.9 shares.

Investec

The stock moved to a higher box. The stock ran into some selling at R94.85. I will monitor this level for another reaction. If it continues to hold. I will add to my position on the break above it. Otherwise I will add the position on the break to the higher box.

Discovery

This stock has displayed my favorite kind of breakout. The one in which it breaks and doesn’t look back. There’s an old resistance at R166. I think the stock we react at the resistance to resttest the trend line from the other side before breaking through R166

Sanlam

The insurer finally broke through R65. The stock is now back above pre-covid crash prices for the first time. Closing through the 200 week EMA. I started building a position, I have ambitious targets at R84.50 & R95.75

African Rainbow Mineral

We have a cup & and handle breakout on the weekly chart. For a R305 target. I took a position in my small R350 challenge portfolio. However the 50 day EMA is still below the 200 day. So on my main portfolio I’m gonna have to sit this one out. Till at least above R305.

Amplats

The stock broke the R1921 resistance. Raised my stop loss to R1762 reducing to -1.06%. I have a R2231 target on the stock. Rising commodity price is the wind need to to support the breakout and the golden cross

Sibanye

The trendline is steeper after the stock came above the 200 day EMA. We’re quite close to having a golden cross. Monitoring for a break above R60 to take a closer interest in the stock

AngloGold

With gold seemingly breaking out a 103 week long symmetrical triangle. If the break hold we could see a strong rally in gold and consequently in gold miners. I’m turning on gold stocks to bullish. We have a nice bullish flag as the stock consolidates from the initial rally from R215 lows. I’m going to look for a breakout on the daily chart. As the stock comes back above 50 & 200 EMAs. We had a golden closs a few weeks ago. I have a R420 target

Glencore

Looks like gonna to step on the brakes a little bit on Glencore. Anticipating a pull back to the 50 day EMA. Before breaking R88. With commodities and resources as a group looking bullish. I expect the stock break through R88

Kumba

Iron Ore prices have been rallying strongly. I called the stock bottom last November 2021. When I saw a couple of dojis on the week chart around the 200 week EMA. The stock has been ticking higher. I’m building a position in my smaller portfolio. Because the 50 day EMA is still below the 200 day EMA. If Iron Ore prices continue to rally I think the stock will break through R773 fairly easily.

Exxaro

Resources stocks have been pretty recently. We have a golden cross backed breakout. The stock made a new high close on Friday. Going to hold off raising my stop loss for now. I will monitor the price action for a false break. We’ve seen a bit of those in this stock.

Impala

The stock came out with a disappointing trading update. Expecting a decrease in earnings. The stock held up. When the market gets bad news and it goes up. It shows the strength of the market. With a golden cross behind, there’s some decent wind at the back. Perhaps the rising prices in commodities will be enough to save the stock.

Goldfields

We have a nice ascending triangle pattern with the R175 topline. Backed by a golden cross. In building the pattern it tests both 200 & 50 day EMAs holding them at every try. If the gold breakout holds I think the stock will break the R175. At which point I will build a position.

Bidvest

The stock made a new relative high at the back of a strong earnings update. Shooting through the R208 resistance. I will put on a 1% risk with 4.1 shares & an initial stop loss R196.30 just below Friday’s low

Dischem

I like how Dischem is moving at the moment. There’s an old resistance at R39 which seems to hold so far. We last saw these prices in 2018. If the market can break above R39. I will raise my stop loss to R36.62 and add to the position.

MTN

Since the giant gap at the back of a strong update from MTN nigeria. It has since been holding the trendline with higher lows. Closing Friday doji. I’m looking for a break higher. The market remembered the R191.90 old resistance. There’s another old support at R200. For now I’m waiting for a close through R200 to raise my stop loss and add to the position. However, if R191 continuts to hold and the stock takes an attempt on closing the gap. Perhaps to test the 50 day EMA. I will raise my stop loss and add on the break above R191.90

British American Tobacco

The company announced a share buy program of £2 billion. The stock had been deadwood for a while that suddenly sprung to life. The buy back program is the wind at the back. There’s an old resistance at R708. If the market takes out this level. I think we will see the stock hit the R950 highs perhaps higher.

Ab InBev

We had a golden cross, the initial rally didn’t hold. The sold off, but holding the 200 & 50 day EMAs. I’m waiting a close above R966.45 to start building a position on this stock. Offers a decent risk reward opportunity with a R1108 start and a R925 stop loss

Astral Foods

The market liked the trading update last week, EPS expected to be up 100%. The R189 resistance held a bit of a fight. I suspect from state bulls. Close Friday with a bullish engulfing candle that engulfs the entire week. I have a short term target at R220

Shoprite

Shoprite has been flirting with the higher box. Dipping to the lower box albeit modestly. It has been a tough hold in the past. I’m giving my stop loss some room. When it establishes itself to the higher box. I will hold off on raising stops