South32 (JSE) 3 November 2022 tradeHello everyone, I would like to share an update on a personal trade I took last year in November on one of my favorite companies in the JSE.
I went long on S32(JSE)
So South32 has been in an uptrend when you look at the monthly timeframe of the stock. On October 1, 2018, the price rejected level 4466, which became resistance broken into and the market found support on that same level on October 2022. Usually, when support shows no signs of being broken, we take that as our first signal of a buying opportunity.
Moving down into the weekly timeframe, we have a trendline that has been re-tested 5 times. I saw a bullish engulfing weekly candlestick which gave me a second signal for a buying opportunity.
On the daily timeframe, there was a downslope trendline that started at level 6230, the market continues to move further down until it broke at 4774, this was a 3rd signal that there is a buying opportunity present, at this point, what more would I need to be convinced to buy this stock when everything is right infornt of me.
To sniper entry my buying opportunity, I moved down to the 4HR timeframe and saw a bearish trendline and waited for it to break, the started buying the stock. I am up more than 22% on my initial investment and I look to exit at the last resistance set on level 62230.
I used top down analysis with s/p, trendline and candlestick for this trade.
See you next time, happy investing.
