Weekly game plan 1 December 2019

So this week is a little weird. There are some bullish looking setups emerging on some of the banks, although they are in the middle of nowhere in terms of large trading ranges. Some of them are on support levels, but not very significant support levels. Therefore they are hard to trust. So I guess, if you are really brave you could look at things like FSR, ABG and SBK for potential longs, and maybe a special mention to WHL as well. They are much higher risk though, so we are not going to look at them here.

Truworths

We have been tracking TRU for a while now and once again it has managed to survive another week above the R50.20 support level. Our game plan here has not really changed. The bias is short and the trade signal will be a daily, or even an hourly close below the support level. This is now the fourth time the support level is being tested, so let’s see if it manages to hold on for another week. We doubt it, but rules are rules and we can’t trade it without a confirmed signal.

weekly-game-plan-TRU-1-December-2019

Reinet

RNI is also a stock we have been tracking for some time. It appears that RNI is now finding support at the R285 level. We would like to see a consolidation here as it holds the level, with the view of taking a long position to play into the trend.

weekly game plan RNI 1 December 2019

Shoprite

The SHP short trade has triggered. As it stands now, there are three rather bullish looking candles, although price is struggling to retake the R130 level. A daily close above the R130 would be a stop loss trigger in our view. That said, selling around the R130 (or just below) seems like the right play here. Our bias is short with a trailing stop loss.

weekly game plan SHP 1 December 2019

MTN

MTN looks fairly interesting. The R90 level has acted as a strong resistance level in the past and could become a support level now. Taking longs of this level could provide very high risk-reward opportunities. Perhaps to be safer though, one should look at shorter-term timeframes for a buy signal? A bullish break of the 1 hour channel could be a buy signal.

weekly game plan MTN 1 December 2019 1 day chart
MTN Daily chart showing the R90 support level.
weekly game plan MTN 1 December 2019 1 hour chart
MTN 1 hour chart showing the R90 support level as well a a bear channel that if broken could signal a long position.

Mr. Price

MRP rallied hard on some positively surprising number released a while back. It seems that it has now pulled back to the break out level and could be setting up a long from here.

weekly game plan MRP 1 December 2019

Anglo American

AGL is one of those stocks we have been tracking for some time now. The bull flag formation here is really starting to take shape nicely. We are buyers if we get a bullish break and a valid buy signal here. There is a resistance zone just above, which if cleared successfully, could be a signal to add a second long position. We are going to be watching this one very closely.

weekly game plan AGL 1 December 2019

*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.

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