MarcoOlevano

$FSRP Firstrand pref shares could bounce soon

Long
JSE:FSRP   FIRSTRAND LTD B PREF
Since bottoming out in early 2018, preference shares on the JSE have been one of the best performing asset classes in our market. Always good trading practice to identify the strongest sectors in the market, and look for buying opportunities towards areas where there is a high probability of the trade working out. Looking at FSRP, I have identified that the 200 day moving average (green line) has acted as a good support area when the stock has corrected towards previously. In addition,the level of R82.00 has acted as both solid support & resistance over the last year and it is very likely to be this case once more. On this basis with a shorter term trade outlook, i would be happy to accumulate FSRP between R82.00 - R83.00 and look to bank profits on a bounce towards R86.00 - R88.00. (aware that the stock has recently paid a decent sized dividend, but this shouldn't change the technical view)

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