Harmony long on momentumJSE:HAR is looking good for a long position. Stochastic, MACD and the two EMA's are all confirming.
ZAR
Goldfields to move to top of channelJSE:GFI is trading in a small channel and is looking like it's on its way to the top of the channel for a small upward move.
Clicks going longJSE:CLS is looking good for a long position. We could see a move up to the resistance zone at around 25000. With today's movement so far, I would wait for confirmation before entering.
FSR - symmetrical triangle breakoutJSE:FSR has broken out of a symmetrical triangle pattern and seems to be moving in an upward direction. If it confirms above the highs of early October, I will consider entering long.
KUMBA - upward momentumJSE:KIO is heading upward for a long position. The MACD, Stochastic and EMA's are all showing confirmation for a move to the upside. This coupled with the fact that it has recently made 2 higher lows and fails to break lower, could mean a nice move upwards to the previous resistance level.
ANG struggling to make higher highsJSE:ANG has been struggling to make higher highs for a while and is currently at a reasonable support level. If it breaks through the level downwards, I will consider a short position. The target could be all the way down to the support level around the 28500 price range.
Long on AMSJSE:AMS is showing signs for a possible long position using the momentum trend-following strategy. The bullish engulfing that formed on the 6th of October confirms this.
BRICS currencies movement for the week – 16 October 2020A strong week for the US Dollar, with most Emerging Market currencies coming under pressure. Also look at my US Dollar Index Idea here:
Despite the USD strength, the ZAR remained resilient, having some of the best relative BRICS currency performance for the week.
BRICS currency/USD movements for this week:
Brazil -1.9%
Russia -1.1%
India -0.6%
China 0.0%
South Africa -0.5%
Euro /USD -1.7%
Technically, the ZAR broke and close the week off below all four the 8-, 21-, 50- and 200-day Exponential Moving Averages (EMA), which over the shorter-term, might provide some further momentum in the ZAR.
If this was a false break and we see the ZAR break and stay above the 200-day EMA (at R16.61) this week, we could see it move back to the 50-day EMA at R16.76. A break and close above this level could see the USDZAR test the diagonal resistance level at R16.85, with a break and close above this level, most probably bringing R17.10 back into play. With the runup to the US Elections, this (USD Strength) in my view can only happen if the momentum swings back from Biden to Trump, which at this stage seems highly unlikely.
The 14-day RSI is not in oversold territory yet, which will have me optimistic should the USDZAR break and close below R16.50 early this coming week. Momentum is turning and very much moving back into the favour of the Rand, which tend to make me believe that we might just be testing the R16.10 levels again over the shorter-term. Watch the US Dollar Index early this week. Should you be contemplating any short-term long positions in the ZAR (short USDZAR), I would only look at doing so below 93.20 on the Index.
VOD on strong supportJSE:VOD is bouncing off of a strong support level that goes all the way back to mid 2018. It looks like it is gaining momentum for a long position, but I will wait for confirmation before entering.
SHP breaking trendJSE:SHP has been in a downward trend since mid September. It broke through the resistance level on the 9th of October and it went back down to test the level as support. If it breaks the high of the 13th of October, I will consider a long position up to the previous high of the top of the trend.
Mediclinic - Bounce off top of ChannelJSE:MEI has been trading in a sideways consolidation channel since mid-March (COVID-19 lockdown) and has reached the top of the channel. A bearish engulfing candle pattern formed yesterday which is a bearish reversal signal. If it breaks through the current small support that it is trading at, I will consider going short all the way towards the bottom of the channel.
Possible short on CAPITECJSE:CPI formed a dark cloud cover candle pattern a few days back which is a possible reversal signal. The MACD and the Stochastic both seem to be on their way down as well which could serve as confirmation for a downward move. I will wait for it to break the previous support level and then consider a short position.
Triangle Breakout on BID CorporationJSE:BID has broken through the bottom of a triangle pattern with today's price action so far. If it continues downwards and confirms through the previous lows of around 24500 I will consider a short position. Once broken through, it might find some support around the 21500 level, but could also move all the way down to the 18000 level.
Long on SLM if trend brokenJSE:SLM is looking decent for a potential long position if it breaks through the downward trendline that it has been forming since July. Keep an eye on this to see if it breaks and confirms above to signal a long position.
Small move on SSW if confirmedJSE:SSW is looking promising for a long position if confirmed with price action.
Glencore on its way up - may find resistanceJSE:GLN is looking good for a long position on our momentum strategy, but may find some resistance at around the 4000 level. If it breaks through this level, we could see it move all the way up to 4300.
ANG long opportunityJSE:ANG is looking good for a long position as the stochastic, MACD and the EMA's are all triggering upward movement.
Old Mutual overviewThe share price is currently heading towards the major descending trend line and previous support from a well-structured double-bottom pattern.
For the more risk-aware investors, I'd advise you to place an alert around the 1280 level and await crossing confirmation.
I will also update this idea upon finding more useful/reliable fundamentals.
Goodluck and follow me for more.
