Stocks in play 20 February 2022

This week’s resources seem like they will be shining armor on the market. Platinum, Oil, Gold all looking bullish at the moment. We are still in a healthy bull market. Top40 looking well poised to make new highs.

Market calendar

Let’s get into this week’s stocks in play

Resources

Platinum

Resources prices have been rising recently. Platinum showing a double bottom reversal pattern. Bouncing off the 50 200 day EMA.The first breakout was from a cup and handle pattern we could see the metal run to $1304 with $992 risk point.

Gold

Gold breakout seems to be a valid one. Looking likely to run up to $2063 prior highs. The yellow metal is quite close to make a 52 week high close, if it closes this week above $1902.60 the high is $1916.53.

Amplats

Bulliah platinum prices are positive for Amplats stock. I’m watching the R2006 old support. If the market breaks through, I will raise my stop loss and add to my position. The company has results coming to today

Anglo Gold

The stock broke the R330 resistance but with a doji. Not sure if the market was merely testing R330 or a valid reversal pattern. We have a head and shoulders pattern on the weekly chart. Setting up. With the gold breakout seemingly holding out. I will watch the R360 neckline. Going to hold off on raising my stop loss for now. Just in case the neckline holds up. The company is coming up with results on Friday. Gold was up 13% during the reporting period at the same time the rand weakened by as much as 12% albeit gaining some strength in the last quarter of the reporting period. Still net weak for the period. The results on Friday will be the catalyst that will propel them in one direction or the other.

Exxaro

Exxaro finally broke out of its rather wide range. Exxaro has been a tough hold with wide ranges. I will be cautious and patient with raising my stop and adding to the position.

Sasol

We have a nice bullish flag on the stock. However I’m going to wait for the R353 old support to crack. I might be a tough one to break. I’m targeting R314 as a place to raise my stop loss to.

Sibanye

We have a golden cross. I’ve been watching Sibanye for a while now waiting for the golden cross. I suppose it needed a move in gold. I’m watching the R64 old support for an entry signal. My goal will then be to cross R73 with the position still intact having added to it a few times.

GoldFields

The stock made a new 52 week high after bouncing off the 50 week EMA. Opening the week with a gap and drive. With gold looking bullish I’m positive on the trade but will hold off on raising my stop and adding to the position. I will monitor the price for reaction in the week

Impala Platinum

The stock broke from an ascending triangle pattern. Hasn’t looked back since. There’s an overhead resistance at R266. If the market takes out this level. I will raise my stop and add to the position. My goal is to be holding a risk free position when/if the market breakt R293

Kumba

Iron Ore prices have been surging recently. Causing a turn in the Kumba stock. It left the 200 week and 50 week EMAs behind in the last few weeks. We now have a golden cross on the daily chart. Market remembered the R691 resistance as Iron Ore prices experienced a bit of a pull back. I’m expecting the market to trendline as a result. Perhaps forming a cup and handle pattern or an ascending triangle.

AbInBev

The stock held the uptrend line support. First rally post the golden cross, usually quickly find some selling. Usually from the bulls that have been sitting with a loss for a period and are happy to take a small profit. With the golden cross and uptrend support holding at the back. Closing Friday with a nice bullish engulfing the 200 day EMA. If the stock closes through R966. I will build a position with an initial stop loss at R921.80. The company has results coming this Friday. Those will be interesting to look at.

British American Tobacco

This week will be an interesting week, because historically R708 has been a very strong resistance. Will be looking to see if the share buy back will be enough to finally break R708. If so I will raise my stop and add to the position. Because that means we in R708 and R959 range

Bidvest

The stock had a strong breakout after the company came out with a trading statement on increased earnings on their interim results. HEPS is expected to increase by up to 40%. It came back to retest the R208 resistance. I suspect old bulls were stuck with a loss for a while and are happy to take a small profit or break even. I expect the R208 level to be old.

Capitec

The bank came with an update expecting an increase in HEPS for between 80%-82%. Market was rather flat on the news. The stock has been in a symmetrical triangle pattern for some time now. Now that the market has had the weekend to digest the trading update. I will be interested to see how the market responds this coming week. I am waiting for a breakout from the triangle pattern to raise my stop and perhaps add to my position.

Discovery

The market memory phenomena came through again. Discovery, remembering the R168 price, found some selling after breaking from a symmetrical triangle pattern. I’ve been building a position in this stock. If the market breaks R168 I will raise my stop loss. Watching for opportunities to add to my position. If the market is to break R185, my goal is still holding and sitting with a risk free position.

Foschini

The stock finally broke the R136 resistance and the down trendline resistance. With a golden cross at the back. And few overhead resistance to speak off. We could see a quick run up on the stock chasing the R163 prior highs.

Mr Price.

Mr Price entered what could be a R217 – R273 range. The company has results coming in May, and has made good acquisitions. If they come with strong numbers that would be a catalyst to breaking R237. For now the stock us tugging R217

Remgro

The stock moved to a higher box. It’s still struggling with entry. I will monitor price action and reactions on the higher box. I’m targeting R138 as a level to place a stop loss.

RMI

The stock flirted with the doors of the higher box without any success so far. If the market fails to penetrate to the higher box. Then we could see a retest of the 50 day EMA. However if the market breaks into the higher box I will raise my stop loss R46.30 just below the 50 day EMA. I don’t want my stop right in front of it

Sappi

The stock gapped higher at the back of first quarter results. Came back to the R52.20 resistance from above and held it. The next important level for the stock is R59.40. I will be looking for entry opportunities between now and then. But for now I wanna be cautious with raising my stop loss. Till volatility has normalized.

Truworths

The component some knock it out the pack number, dividends up 29%, earnings up 46% and a share buy back. The market absolutely loved the results. I’m expecting the market to continue to rally. I’m waiting for a close through R67.20 resistance to raise my stop loss and to my position.

Vodacom

The stock legged MTN for some miles. However it woke up from the dead post results. So far the market still remembers R150.50. If the market can take out this level I will raise my stop loss and add to my position.