Once again we’re doing things a little differently this week, just because we can really. So instead of giving some broader market trade ideas as we usually do, we’d thought that we would do a CFD account update and share the current open CFD trades in our managed CFD accounts.
Open short-term trades
Anglo American Platinum (AMS)
Our initial trade idea here did not go so well as it broke the 89 day moving average and stopped us out. We have subsequently re-entered the long trade around R1860, so again we are taking some pain. Pain aside, this setup is looking really good and once the immediate (tertiary) down trend breaks, we think that there could be rather a lot of upside for this stock. This is one of those trades that we’d be happy to hold for a long time, as long as it is working. We will likely bail out if the swing lows are taken out, but we’d like to give it another week to see if the stock can catch a bid and break out. We’re looking for a retest of recent highs as our target price range.
Compagnie Financiere Richemont (CFR)
We took two-thirds of this position off as the range break out target was reached (R150 to R162). The last third remains open on an ATRx2 trailing stop loss. This should allow the trend to do its thing over time, without this position posing (relatively) much of a risk to the overall account.
NPN is trying to build a base here. We are long with an oversized position at the moment (in around R3150). Once again we’re taking a little bit of pain of here, but our stop loss is below the support base it has been forming over the last couple of weeks (a break below R2900 would take us out). Momentum wise it’s starting to look better too. We’re expecting the overall up trend to resume in the coming weeks (i.e. NPN to trade above the 200 day moving average and likely push for the previous highs).
Old Mutual (OMU)
We bought the break around R13.30. We’ll take two-thirds off at R15 and leave the rest on an ATRx2 trailing stop loss.
Reinet Investments (RNI)
We’re long RNI from about R264 (position opened on the 13th of May). So there is not really much for us to do here other than sit and wait for the trade to work out. Currently our stop loss is at R274, based on ATRx2 on the daily timeframe.
Standard Bank (SBK)
At R140 we’ll likely take off two-thirds of the SBK position and let the rest ride on an ATRx2 trailing stop. As it stands now, we are long from around R120 and our stop loss is currently at R126.50.
We entered SHP long sub-R148.50 with an eye on R160 – R164 as a price target range. Currently our stop loss is set at R150, just to protect us from the potential of this trade turning into a loser. Once SHP gets clear of R156, we’ll either move our stop up to R152 (the bottom of the current range) or set it according to ATRx2 rules, depending on which is higher.
We are currently long ETH. Although the swings can be wild and scary due to the sheer size of the moves, we think that from here to the end of the year, we should do ok on this trade. It’s going to be bumpy, but we’re buckled up and happy to actively trade in and out around the core position. We also know that pullbacks in excess of 60% are very likely and note that the current pullback is still within historic parameters for the instrument.
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*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.