Sometimes we just need to be patient and follow the trend. We often get so caught up in the short-term news flow and happenings of the market that we lose focus of the bigger picture. Right now markets are trending higher, so our job is simply to look for opportunities to get on the bus.
Offshore trade ideas
S&P 500 (SPY)
All time record high on the SPY. The trend is up and $430 is but a stone’s throw away.
Russell 2000 (IWM)
Bullish break of the pennant formation. No new high yet, but it’s looking good for the push to $240.
Nasdaq (QQQ)
Key resistance broken. No new high yet, although it’s looking good for the move to $330.
Dow Jones Industrial Average (IYY)
Another record high close.
U.S. Dollar Index (DXY)
$90.50 resistance is putting up a fight, but overall it is looking good for the move toward $92.
USDZAR
Weekly chart.
The moment of truth… does it bounce back to R14.50 from here?
Bitcoin (BTC)
The $35k level has now held for four weeks. Perhaps we see it bounce up to $50k in the coming weeks? Long positions taken here can use a weekly stop loss below $35k.
Ethereum (ETH)
ETH is also holding its support. We still like the long position here with a weekly stop loss below $2040.
Gold
Gold is a little tricky here. At first glance it looks to be finding resistance and potentially setup up for a move back toward the bottom end of the range (at $1675-ish). The flipside here is that the inflation narrative will be a bullish driver for Gold. That said, it seems that the market is convinced that inflation is here to stay. Unless there is a change in sentiment toward inflation, Gold will likely drift towards the lower end of the range. With an eye on the bigger picture, we think that taking / increasing Gold exposure at the bottom of the range would be a great opportunity. For now, patience is key.
Brent Crude Oil
Oil is trending up and has broken recent highs (and resistance). $75.30 incoming.
South African trade ideas
DRD Gold (DRD)
Our comments on Gold above refer.
DRD is looking very interesting for a longer-term equity entry here. The ideal entry was on the break of R15.69, although between R16.50 – R17.50 could be a good entry as well. DRD is ticking all the boxes for a long-term trend change. In the short-term, should Gold come under some pressure, DRD could come under fire as well. For the longer-term trader, perhaps taking some exposure here with the view to add more if DRD drops to R15.69 support again would be a prudent gameplan.
Mediclinic (MEI)
MEI range broken. Last time it faked out, so some caution is necessary. This time around though, it was a slower, more consistent grind to get and hold above the resistance level. A long position here offers an attractive risk-reward.
Mondi PLC (MNP)
MNP could bounce off the 200 day moving average here. The long trade will be triggered on a daily close above the blue downward sloping trend line. Aggressive traders could try get in on a 1 hour close above the trigger line. Stop loss below R360.
Nedbank (NED)
We’ve been tracking NED for a long while now. It is probably wise to take off most of your long position here and keep a small portion on a trailing stop loss.
Netcare (NTC)
NTC broke out of the range and is looking good for that long-term trend change trade.
Sanlam (SLM)
SLM back at the top of its range. Our bias is bullish, although we need to wait for a confirmed breakout of the range.
Truworths (TRU)
TRU finally got clear of the channel resistance. Now it looks like it is making a flat top triangle. Stop loss at R54.
Woolworths (WHL)
We’re looking for a bullish break from this little range on WHL.
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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.