Weekly game plan 5 July 2020

This week we are looking at a few local charts from a technical perspective only. Sometimes we get a little caught up in the noise that comes with consuming news around the market. Thus, sometimes it is helpful to just block out all the noise and just look at the charts. The mantra we often have to repeat to ourselves as traders is ‘allow the market to lead’. Often get caught up in trying to piece the whole thing together, when in truth our job is really fairly simple. Let the market show you what it wants to do and then just follow it. So this week we will only focus on a handful of charts that might be setting up for good trades.

Woolworths

WHL constructive setup. Above R35.50 should get it going with a potential target at the 2000 day moving average.

Truworths

TRU back to the 50 day moving average. Looks like it can bounce from here. We think they will take Jet from Edgars, which might also act as a catalyst.

Telkom

The run has been glorious, but we think that it is time to starting banking those TKG longs if you have not already.

The Foschini Group

Great range! Make TFG great again! Coming out of this range will provide a good trading opportunity, but beware of a breakdown.

Sanlam

Nice pennant forming on SLM. We’re watching for a break in either direction.

Standard Bank

Most banks currently have very similar setups to SBK at the moment. Should SBK get above R106.00, it could be time to rock n roll, but below the 50 day moving average and it’s good night nurse.

Sappi

SAP has had a nice pullback to the 50 day moving average. It would be nice to see a bounce from here.

Nedbank

NED showing a constructive setup above the 50 day moving average with a easy stop loss just below.

MTN

Nice flat top triangle setup on MTN. A high volume breakout would be fantastic.

Fortress Fund B

We’re watching the flag formation for a potential breakout on FFB.

ABSA

Another flag formation on ABG that we are keeping an eye on. A break above the 50 day moving average would be very constructive in our view.

*Please note that these trade ideas form 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.

Advisory services

We’re happy to announce that we now have a registered tax practitioner as a part of our team. Well, he’s been with us for a few months already, mostly doing tax clearance certificates for crypto arbitrage traders, financial emigration for individuals moving overseas, as well as, the odd intercompany loan agreement for some companies in the startup space. Thing are off to a good start in that space and we recently posted the first of what will be a monthly blog under Tax insights. We hope that the information contained in the Tax toolkit for 2020 post will help both traders and investors with more efficiently compiling and submitting their annual tax returns. Of course, if you would like for us to help you with your tax affairs, you are welcome to contact us.

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