JSE:CPI CAPITEC BANK HLDGS LTD
Capitec was rejected at the upper resistance, which is near the 200-day moving average, so the region can be read as double resistance. However, to confirm a bearish bias, I will be observing price pulling towards the horizontal support. We want to see price go below R1,793.14. In that case price will trend down into May/June bottom. The lower trendline and 200 week moving average become potential reversal zones.
Capitec has gone below the R1,793.14 price, however it is close to oversold on the RSI(14), it can bounce from here and attempt to break out of resistance. Another line of resistance can be drawn from 29 November through 16 January with reasonable expectation that if price breaches the broadening resistance, it will stop at this one. A weekly close above the 2 lines will make me close short positions & re-assess.
Capitec can put a relief rally (not one to be bought) from here, if we draw a Pitchfork from the 3 October low to 30 November high then project it forward we can see today's price sitting on the median line alternatively a half cycle low. But lower lows are coming.
Trade closed manually