How I'm seeing Capitec Bank from a medium term technical perspective.
My comments on CPI pre-market today: Capitec Bank (CPI) – Over the last few months I’ve highlighted opportunities on both the long and short side. The following is an updated view: Two setups seen within a large head and should formation: (1) a bear flag and (2) a smaller head and shoulder...
All three of our momentum indicators are signaling a short for JSE:CPI . If it breaks the lows of 20 April we will aim for a target of the R1710 level.
JSE:CPI has recently bounced off of a support level and seems to be on its way up again. The stochastic, MACD and the cross of the 3 and 15 EMAs are al confirming this move.
Outperforming it's peers, not only has Capitec printed new highs but is also approaching historical forward PE highs. Valuations are getting stretched. Ahead of earnings, the price does seem to be finding some resistance at very overbought levels. For the life of me, I can't understand the current price and can't fathom where investors see value at current levels....
JSE:CPI has been trading in a sideways consolidation area since Jan. With yesterday's price action it broke out of the top of the channel, which could mean a good opportunity to go long.
Above 199200 supports a bullish trend direction.
Trend strength indicates a strong trend gaining strength.
Fading downside price momentum (see the lower panel) supports the bullish bias.
RSI leaves enough room for further upside price potential.
At the lower range of the Bollinger Bands. This increases the likelihood of a pullback.
The following content is an extract from this morning's client research.
In terms of single stocks, one of my ideas is a local pairs (market neutral) trade idea from the commodities/mining sector. For more insights and real-time ideas, or if you are considering an alternative trading services provider get in touch today.
Another chart/insight published to...
Capitec is looking rather weak at the moment after a climatic top formed at the 2195.00 area.
A pullback to its long term trendline around 1845.00 could provide a good buying opportunity if one is patient.
*Disclaimer* - ideas shared in the above is for educational purposes only and IS NOT trading or financial advice.
Shorting CPI always remains very risky.
The price action is at the upper range of the linear regression channel pattern.
This increases the likelihood of a mean reversion trade.
The angle of the trend is also too steep at a 57-degree angle.
A 45-degree angle is regarded as healthy and hence a correction might occur.
The price action is also overbought.
Downside...
JSE:CPI has tested a trend line multiple times since last October. It is currently bouncing off of this line again and we could see an upward move if it doesn't break through downwards. The stochastic and the MACD are both confirming this momentum. The EMA's briefly crossed yesterday, but have since uncrossed again. If it breaks above yesterday's levels, I will...
Personally I don't get why the stock made these extreme new highs but fortunately, we trade what we see and not what we think. SO "technically", the price has breached the 50 day moving average and is making a second attempt at breaking the new short term support at around R1734.00. A convincing breach and close below this level sets up much lower targets for the...
Last year, on the 14th December 2020 we wrote an article about our Investment Club software and our in-house company portfolio which we run on that software. As we said in that article, running this portfolio has proved to be a highly motivating exercise for our staff.
Since 14 December last year, there has been just one change to the portfolio, when the Clicks...
Capitec Bank Holdings Ltd. is a bank controlling company, which engages in the provision of retail banking services. It offers transactional banking services and loan products such as term loans, credit facilities, and credit cards. The company was founded by Michiel Scholtz du Pré le Roux on November 23, 1999 and is headquartered in Stellenbosch, South Africa.
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