I have been bearish on local banks since silly season ended and Investec PLC having outperformed thanks to the share buy back scheme, now provides the better opportunity. We are actually seeing weakness with some follow-through today. Looking at the momentum indicators, we can just start to see them starting to point south so I would be looking to short any little bounce now (near 109.00/110.00) for a target of around 102.50. I do believe that without Investec themselves propping the price up, this stock would have been far lower by now.
Trade closed: target reached
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It took a while and a bit of sweating bullets, but we have banked this baby at 102.00