A little late due to some administrative changes, although we decided that we should publish some of the trades we are watching this week anyway.
Capitec is powering higher in steps. It reaches a resistance level, consolidates for a few days, then breaks higher. Recently we saw it close above its most recent high and push higher once again. We are watching this pattern for repetition and want to be buyers into the continued strength of this trend.
This is another one of those unstoppable stocks. It reached resistance, broke out, pulled back for a retest of the level and managed to break higher once more. Again we are playing into strength here.
Financials have not been the hottest flavour on our market for some time, although it seems that there is some bullish momentum coming through now. Discovery it trying to reverse its down trend. It failed at this level before, but on Wednesday managed to close above the key resistance level, triggering a long trade.
What can we say really? The breakaway gap it made was an incredibly bullish signal and now it has broken the highs and once again triggered a long.
A little riskier perhaps, but we are watching ABSA for a break above the resistance level for a potential buy.
*Please note that these trade ideas for part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.