Capitec Bank share price just reached a resistance level on bigger time frames like the daily, with addition to the weaker Rand after the unemployment news release stats as well we just saw the price breaking and testing below the trendline,
the share price may go down to just over a R1000 as stated on the chart analysis but it may bounce long again.
We may derive the following from the Weekly CPI chart:
1. Price has recovered significantly - in fact, it is not far off from testing the ATH.
2. We need to carefully watch price at these levels. Generally, reversal patterns occur at top levels and may allow for sells. We also need to ensure that we are also accurate in doing so, because price may break through...
JSE:CPI is looking like it might be reversing trend at the moment. It is struggling at resistance level and has formed what looks like a double top. As always, I will wait for confirmation before entering short.
Capitec is approaching it's all time highs. Expecting this zone to become resilient resistance and entice profit taking. We can see both trend and horizontal resistance lines converging around this level. RSI very strong and expecting a retest of prior downtrend line established from previous high breakdown.
Keep your eye on CPI.
- Price at prior breakdown level (May 2019).
- Price breaching incline support.
- RSI strong but in signaling a bearish divergence.
- Yesterday may have been a blow-off candle.
Caution to the fresh longs.
Crossing above its 13- and 21-day simple moving averages. First bullish crossing in the last 44 days!
Bullish ParSAR crossing. First signal in the last 6 days.
Crossing above its 8-day linear regression line. First crossing in the last 28 days!
RSI on weekly chart is at a reading of 22. Oversold.
RSI on monthly chart is at a reading of 39. Moderate oversold.
Having missed the 'short' opportunity on the break of that H&S neckline, CPI seem to be consolidating for a further move lower.
I'm patiently waiting for a break of that consolidation range to pull my short gun!
Looking at the current correction to complete as follows. First leg was 3 waves, expecting another 3 waves up to previous highs with another 3 down back to current levels to make a flat correction for more upside.
Got a bit carried away with this one.