JSE:BID consolidating near the recent all-time high. A close above R411 will be a breakout confirmation and will warrant a long position with a stop below the consolidation area, preferably no more than -10%.
All three of the momentum indicators signaled a short position on JSE:BID . Yesterday's price action triggered the short position. We are now aiming to reach the target around the 334 level.
A quick update from the last post linked below.
I am labelling the rally from the wave ((ii)) low to 41225 as wave ((iii)) which has unfolded in five waves labelled wave (i) to (v).
The current correction is for wave ((iv)) to be followed by wave ((v)) to complete wave C of (5).
Unless we see capitulation, I will use this count as the preferred count.
Bidcorp has been one of the stronger names on our market with the target 1 zone being reached (R408) since we took the breakout at R336 .
Price is up against strong resistance here and so we will likely see some consolidation or a deeper pullback to the 50dma. If bulls are able to push R408, one can target R450.
Bidcorp stock has been underwhelming since listing, generally moving sideways in choppy fashion and as a result has not been in my watchlist, until now.
From September 2022, the share price started to rally in an impulsive manner and on the 1st of February 2023 released a positive trading statement expecting HEPS and EPS to increase between 43% to 49%.
The market...
First of all...How does this price even make sense? But besides that, we now have a bearish reversal candle (long upper tail, failed high) at over-bought levels as well as a potential double top scenario. We may be betting against the trend here (which we are) but surely sanity must prevail. I am of the opinion that we are beginning to see the start of some profit...
It definitely can seem tempting to buy (go long) a stock like Bidcorp as by theory it's broken above the Cup and Handle pattern and the moving averages look great 7>21 >200.
However, it's also good to look at the broader picture of price action. Bidcorp has been moving in a sideways rectangle formation since February 2021...
I think only above R30.00 will give me...
A bearish harami formed on JSE:BID two days ago. It came very close to triggering our order yesterday, but just missed it. Once triggered, we aim for a target at the 27800 support area.
BID Corp - Trade Idea Update (Buy/Long, 03 October - see attached)
Now trading +15% (ungeared) with massive upside follow-through on the back of this morning's capital markets trading update.
Going forward, two levels to monitor:
1. The 61.8% FIB - thus far, the market has pushed the price through this zone.
2. Approaching 2x standard deviation over 200 days...
It has taken a while, but finally all 3 of the indicators have crossed on JSE:BID . We are looking to ride the move upwards all the way up to the resistance level at around 319.
Potential setup depending on subsequent price action. See chart. Near oversold and trading more than 2x standard deviation over 200 days.
Additional notes on chart.
– Rising wedge formation
– Breaking below monthly and quarterly pivots
– Breaking below 8 21 50 EMAs (all of which are starting to turn lower).
– Sell on rebounds into the 31400c to 31800c range or on a breach of the trend line at higher levels
– Stop-loss: 32530c
– Target: 29000c
– Current: ~31200c
- Bidcorp is trading within a broadening formation and sideways consolidation
- Price is still well off the covid lows / PE:27.4 / Dividend Yield 2.2%
-No real longer term trade setup here until a key level breaks below R303 or above R336
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Crossed below its 200-day simple moving average.
Below 32100 supports a bearish trend direction. Crossing above this level will negate the bearish stance.
Fading upside price momentum also supports a bearish trend direction.
RSI leaves enough room for further downside price potential.
Trend strength also indicates a weak likelihood that a trend might be developing.
