Hudaco still remains one of my favourite small/ midcap share on the JSE. For our full summary on the company currently, click on the following link to read the full report (free): http://oldoak.co.za/wp/index.php/2021/02/05/get-to-know-your-jse-companies-hudaco-industries-ltd-jse-hdc-3/
From a technical point of view, HDC recently broke its recent long-term bearish trend and found resistance at the top of the short-term channel. It also found itself in an EXTREME OVERBOUGHT environment according to its 14-day RSI and now experience some profit-taking. Should we see a break a close below the 21-day Moving Average (EMA), could bring the 50-day levels (R89.60) back into play. If I were a short-term trader (which I am not), I would set my stop loss at the 200-day EMA (R83.50) as a break and close below these levels would place HDC back into its longer-term bearish channel.
A break and close above R100 could not only bring our fundamental target of R120 (read our report with link above) into play but also our technical target. A short-term trader could wait for R89.50 - R90 to buy, while long-term investors can hold the line if already invested. All and all – a good buy.
From a technical point of view, HDC recently broke its recent long-term bearish trend and found resistance at the top of the short-term channel. It also found itself in an EXTREME OVERBOUGHT environment according to its 14-day RSI and now experience some profit-taking. Should we see a break a close below the 21-day Moving Average (EMA), could bring the 50-day levels (R89.60) back into play. If I were a short-term trader (which I am not), I would set my stop loss at the 200-day EMA (R83.50) as a break and close below these levels would place HDC back into its longer-term bearish channel.
A break and close above R100 could not only bring our fundamental target of R120 (read our report with link above) into play but also our technical target. A short-term trader could wait for R89.50 - R90 to buy, while long-term investors can hold the line if already invested. All and all – a good buy.
Trade closed: target reached:
Will do an update soon, as this was only my first target. Personally, I'm not selling