JSE:BIL has had a solid bullish run since the start of 2016. After falling to a low of R136.30, the share price has steadily risen, reaching a recent high of R326.73. But the mood on the stock might just have changed...
If you look at the short-term trend-line, you can clearly see it's been broken. Where it found support before, it has now found resistance.
In addition, you can also see a clear divergence on the MACD. As JSE:BIL was reaching new highs, the MACD was continuously moving lower. The MACD is also now firmly in bearish territory, indicating JSE:BIL is in a bearish trend.
The Slow Stochastic also recently indicated the stock was overbought. And although it is no longer in overbought territory, I do think the share price will continue to weaken.
With all of this in mind, I am going to short JSE:BIL.
Action: Place a Limit order to SELL at R297 with a Stop Loss set at R312. I will aim to take profit at R280 and R270 respectively.
Margin: 14%
Gearing: 7.14x
Gain: +64.94%
Risk: -36.08%
If you look at the short-term trend-line, you can clearly see it's been broken. Where it found support before, it has now found resistance.
In addition, you can also see a clear divergence on the MACD. As JSE:BIL was reaching new highs, the MACD was continuously moving lower. The MACD is also now firmly in bearish territory, indicating JSE:BIL is in a bearish trend.
The Slow Stochastic also recently indicated the stock was overbought. And although it is no longer in overbought territory, I do think the share price will continue to weaken.
With all of this in mind, I am going to short JSE:BIL.
Action: Place a Limit order to SELL at R297 with a Stop Loss set at R312. I will aim to take profit at R280 and R270 respectively.
Margin: 14%
Gearing: 7.14x
Gain: +64.94%
Risk: -36.08%
Trade active:
SL Ajustment:
Adjust SL to R292 and lock in a gain of 12.03%!
Adjust SL to R292 and lock in a gain of 12.03%!
Comment:
Trade hit adjusted SL at R292 and is now closed for a final gain of 12.03%.