How I'm seeing Capitec Bank from a medium term technical perspective.

My comments on CPI pre-market today: Capitec Bank ( CPI ) – Over the last few months I’ve highlighted opportunities on both the long and short side. The following is an updated view: Two setups seen within a large head and should formation: (1) a bear flag and (2) a smaller head and shoulder structure. Last week’s ‘weekly pivot’ was 205859c of which a break and close below (accompanied with strong offers) could accelerate the risk to the downside. On a fundamental basis, the share has always traded at a massive premium versus it’s SA peers , and continues to do so. A review of the JSE Banks price-to-book (see chart that follows) notes the group trading at an average of 1.46x vs CPI trading at 6.81x.

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