Correcting the Bull RunBull cycle complete, now it's correcting. The market moves in cycles/waves, Impulse and Correction.
RITN trade ideas
Richemont hit our first profit target at R205.65 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.
Richemont (CFR): A Short OpportunityRichemont price has been making lower highs with resistance from August, price has formed a rising wedge. On the hourly chart price is showing oversold and can be expected to rise with lower trendline giving support for a brief period. If price reaches the resistance line & rejected go short, alternatively if price breaks below the support line of the wedge.
Take profit target is 10% drop or when price forms a swing low after the 10th of November. From this point the bounce will be assessed for a re-entry short upon forming a bear flag or if price is rejected at the trendline.
Stop-loss: If price closes above the resistance line on a weekly basis it will be time to close the short & go long.
Richemont - Buy/Long IdeaRetraced to find support at the 61.8% Fibonacci retracement zone + clearing upper boundary of short term channel + reclaiming near term moving averages + 14-day RSI just above the 50 level. Please note: Earnings on 11 November creates an 'event risk'.
Preferred Entry: Currently ~18015c
Stop-loss: 17350c
Target: 20200c
Initial recent long was below 15000c in May when it dropped substantially following it's earnings release.
For more research, including trade ideas, get in touch today.
COMPAGNIE FIN RICHEMONTShare down more than -9% on earnings disappointment.
Technically there is a gap opened, up to 172, that may get filled in the short term. RSI is also approaching oversold territory, meaning an oversold bounce may be reasonably expected.
But overall I'm being guided that 'bear flag' formation that may target 130 next!
I'm also a firm believer that "Nothing good happens under the 200dma", so for as long as we are below it, I will be looking for 'shorting' opportunities.
CFR broken R219.00 supportCFR has broken down below R219.00 support and closed below it for 2 days now, a similar fractal from last year june- august has come into play
and can see CFR trade lower over the next few weeks to reach target of R195.00.
Reward to risk : 1.5 : 1
*Disclaimer* - ideas shared in the above is for educational purposes only and IS NOT trading or financial advice.
CFR - Strong results could mean an upward moveJSE:CFR earnings were released this morning and the results were quite impressive. It gapped up around R10 per share this morning. If it breaks the previous highs formed in early December 2021, I think we can see a nice upward move to form some new highs.
Below are the highlights of the earnings report:
Compared to the third quarter ended 31 December 2020:
* Strong sales, up by 32% at constant exchange rates and by 35% at actual exchange rates
* Double-digit sales growth across all regions, channels and business areas
* Strongest performance from the Americas and Europe, rebalancing regional sales mix
* Retail and online retail, a combined 78% of Group sales, driving growth
* Excellent performance from all three business areas:
- Jewellery Maisons, with sales growth of 38% at constant exchange rates (+41% at actual exchange rates)
- Fashion & Accessories Maisons, with sales growth of 37% at constant exchange rates (+40% at actual exchange rates), sustained by Chloe, Montblanc and Peter Millar
- Specialist Watchmakers, with sales growth of 25% at constant exchange rates (+29% at actual exchange rates)
Double Top on RichemontA double top pattern has formed on JSE:CFR and it looks like it might be continuing downward. If it breaks through the low formed on 20 December 2021, the pattern will be confirmed and I think we could see a move downwards towards the 19000 support level. If it fails to break through the level, we could also see a bounce upwards.
