Looking at a short position on SAPJSE:SAP formed a bearish engulfing candle pattern yesterday which could signal a reversal. This seems to be whats happening at the moment.
For the lat couple of months it has been making lower lows quit regularly. If the price breaks through the latest lower low from the 16th of Jan, I will consider entering a short position.
ALSI
NPN ReversalJSE:NPN has shown a bullish harami which is a strong reversal signal. This pattern formed at a previous resistance level which strengthens the signal.
We can expect a downward move as the stochastic is also turning.
If all goes well, w can expect it to go all the way down to the support at around 280000 and we will exit the trad if it breaks through the resistance at around 318000
WHL for possible Long positionJSE:WHL had a tough time last week with it's poor results, but it is lining up nicely for a recovery upwards.
Last week ended by it forming a bullish harami which is a strong reversal signal. This level is also a support/resistance level from the recent past which solidifies the signal.
If we were to enter a long position, I would wait for it to break into the gap formed last week at around the 5225 level with a target up at around 5465.
MRP Upward price channelJSE:MRP has been trading in an upward price channel for quite some time and it has broken through the mid line recently and is looking good to go upwards. Along with this, the stochastic has recently turned up through the 20 line and the two EMA's have crossed upwards.
I will look to enter around the 25000 level with a target around the 26200 level
Dark Cloud Cover on SBKA dark cloud cover has formed on JSE:SBK which is a top reversal signal, so we can expect a downwards move.
A dark cloud cover follows a preceding up trend where a red candle opens up above the previous day's green candle and closes 50% below it's body.
This particular pattern has formed on quite a strong resistance level which solidifies the signal.
We will look at entering a short position if it trades around the 17200 level with a target around the previous support level of around 16000.
Descending triangleDescending triangle, its a bit confusing with the first break through the top of the trend line however it proves promising as its broken further through the support line