Sappi broke a defined channel to the upside last week, followed by a fake out and break back into the channel. It is important to take notice of fake outs like this because it usually results in a selloff as a result of trapped longs positions. People buy the breakout in anticipation of a good move upwards (many times with leveraged positions) and when the share...
NB- Countertrend trade / Volatile share
- volume increased
SLJSE:BAT below R13.90
- MANAGE YOUR RISK -
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Mondi has been undergoing distribution with an upsloping trading range (TR). After a backup to the TR we now see high volume and increased volatility to the downside indicating increased selling. This is also pushing against an important level of 29000. If this breaks we can see a significant markdown.
Mr Price looked like continuing the decline (see posts below) but high volume is indicating demand as price approaches 15000. This indicates that there will be sideways action and the decline will be on hold.
Life Healthcare has been trading in a downtrend. After a redistribution and backup to the trading range, the expectation was for a continuation (See posts below). It has taken some time but with some volume, it seems LHC is only now ready to be marked down further.
Bidvest has been drifting lower and testing support at 7500 with what looks like a downsloping distribution. Supply has stepped in with some volume. Negative divergence looks like the support will be tested again.
Anglo Platinum is at the top of a rising wedge on the DAILY. It was unable to hold a break at the end of last month and fell back to the bottom support. Can it break above and hold this time? A rising wedge is generally a Bearish pattern so if it fails to break and hold above we expect it to break through the bottom and for price to fall. Next week will tell us more!