The South African economy has tainted JSE stocks and led to a delisting of hundreds of stocks over the years.
This sentiment has affected the JSE share price negatively as more investors shun the bourse. Prior to this, the share price was stuck in a trading range of between (R110-R130) - made for some nice predictable trades in that time.
But now, the JSE has broken downwards out of that range and could test previous supports of +- (R104- R94)
Worse case scenario it breaks much lower and retests March 2020 lows of R84-R85
What I'm hoping for is a retest of previous support now resistance (R109) and then the next resistance zone of R120.
Trading targets
(Starting at R104) The share is currently in a downtrend, and may test R100 again before the next bounce up. I will l enter half of my money now at R104 and the next half at R100 - To minimize risk.
The risk reward isn't as attractive as I would like, there is more downside risk than upside potential, which makes this a much riskier trade, but im still willing to test the waters, as I'm strictly using profits from previous trades.
Take Profits:
First target = R109 ( 4.5% gain)
Second target R120 (15% gain)
Cut Losses:
Stop loss 1 = R95 (8.6% loss)
Stop loss 2 = R85 ( 18% loss)
Disclaimer:
This shouldn't be misconstrued as investment advice, always seek out a professional financial adviser before making any investment decisions.
This sentiment has affected the JSE share price negatively as more investors shun the bourse. Prior to this, the share price was stuck in a trading range of between (R110-R130) - made for some nice predictable trades in that time.
But now, the JSE has broken downwards out of that range and could test previous supports of +- (R104- R94)
Worse case scenario it breaks much lower and retests March 2020 lows of R84-R85
What I'm hoping for is a retest of previous support now resistance (R109) and then the next resistance zone of R120.
Trading targets
(Starting at R104) The share is currently in a downtrend, and may test R100 again before the next bounce up. I will l enter half of my money now at R104 and the next half at R100 - To minimize risk.
The risk reward isn't as attractive as I would like, there is more downside risk than upside potential, which makes this a much riskier trade, but im still willing to test the waters, as I'm strictly using profits from previous trades.
Take Profits:
First target = R109 ( 4.5% gain)
Second target R120 (15% gain)
Cut Losses:
Stop loss 1 = R95 (8.6% loss)
Stop loss 2 = R85 ( 18% loss)
Disclaimer:
This shouldn't be misconstrued as investment advice, always seek out a professional financial adviser before making any investment decisions.