Falling Wedge (Flag pole) has formed over the last few months.
We then had a breakout above the Wedge alone with a breakout above the downtrend (Action line)
We believe the nature of the analysis is High probability where the price is above 20 and 200MA.
The target is at R327.51
JSE:CFR closed above a key MA today, the stock is also above a potential resistance level. The MA is still facing downwards, however, without the indicator, the price action is compelling to initiate a long position.
Potential target and stop levels on the chart.
Richemont (JSE:CFR) Breaking the significant down trending channel which has held price lower since July in a very controlled 'Fashion' (excuse the pun). The level we bounced from is the 50% fib retracement from the May 22 lows and May 23 highs. RSI and MACD has been building divergence for weeks where the indicators made higher lows which was not confirmed by...
Richemont's trading chart signals a potential entry into Impulsive Wave 5, as observed on the weekly time frame.
- Monitor the emergence of support above the previous high of Impulsive Wave (1) resistance.
- This support could drive a price movement towards the 400 level.
NOTE: RICHEMONT - These ultra-luxe brands appeal to the top 0.01% of earners, who remain...
JSE:CFR has breached what we consider to be a key MA, however, the stock is still trading above the 200 dMA. The 200 dMA is the next potential support level, we're keeping an eye on $JSE:CFR.
No position.
Inverse C&H has formed on Richemont.
Before the handle formed, it made a Breakaway gap.
This is where the price stopped its current uptrend, broke below where there is liquidity that didn't fill, and then continued down.
Now gaps close 70% of the time, so we could get a spike up before the downside. But that would be for a conservative trader.
Other...
Rising Wedge has formed on Daily.
Normally you expect the price to break down as it's generally a bearish pattern.
However, as the trend is up, the wedge is up and the gap is up - signals strong upside.
The price has broken up, and we could get a bit of downside before the next move up.
7>21>200
RSI>70
Target R4,142
FUNDAMENTALS:
It seems like since the...
$cfr is trading above its long term channel it has respected since 2007. Last time it flew above this channel its wings melted. The RSI and Moneyflow indicators show that strength is leaking out of this share. Investors are securing profits. This is a quality share with a strong outlook but may return to former support around CHF 127 to consolidate. Not a good...
JSE:CFR has reached a previous resistance level. The run up has been impressive; ideally I would like to see a brief consolidation before a breakout but we gotta respond to price action not to our wishes. Price action pays.
JSE:CFR has tried to retest the recent breakout level. The stock is now attempting to break above the recent high. It can be a decent place to add to en existing position, or to establish one near the breakout level.
Profit target 1 Reached for Richemont at R205.65
There is still a strong Bullish bias, but we'll have to wait for the next pattern to form.
The JSE Santa Claus Rally is premature but we are loving every second of it.
Let's hope it continues after a trying couple of months.
Short formed W Formation
This is where the Right rounding bottom is higher and makes higher lows than left rounding bottom.
The RSI is above 50 and has broken its downtrend.
Target R205.60 to begin with...
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After the initial markup - see posts below - we have seen a very shallow pullback. The pullback showed a lot of effort (high volume) without response indicating that all available supply is being bought. Yesterday there was a significant range bar and the markup is now set to continue.
This month, I looked at Richemont as an investment stock to follow during the mark-up on a weekly chart - see post below. At the time I felt a pullback to R120 was possible but looking at price action last week it looks like the stock could already be ready to mark up further. In the smaller trading range on the daily timeframe, we have seen a spike in buying with...
Richemont has been in an accumulation range since 2014. After some preliminary supply (PSY) and a buying climax (BC) price moved sideways with someone accumulating stock between R100 and R105. After a spring down to R80 in March 2020 price met with high volume buying and has pushed higher on slightly lower volume indicating that the buyers are holding the stock...
Looking at the Richemont, we may derive the following from the weekly chart:
1. CFR is at a notable resistance level where price has slowly started to reject the previous trend line. (The backtest)
2. We are seeing a correction pattern in play.
3. I am favouring a move to downside in the near future.
4. If the backtest holds, bears will bring the price...
