2KS trade ideas
JSE:OMU Old Mutual Markdown after Redistribution After a sharp drop, Old Mutual has been undergoing redistribution. We have now seen all the Wyckoff Phases and a backup (BU) after the breakout to the trading range (TR). So base on the Wyckoff theory the markdown in Phase E is set to start. Watch for a strong downward trend. I had previously analysed this as an accumulation range (see posts below) because it looked to me that there was buying at R20. After breaking the level and now it has BU to this level again and is set to be marked down.
Old Mutual - Trade IdeaOld Mutual: The group's share have been battered recently declining from 2200c to a low of 1728c. Now I don't know if it's the legal proceedings between the board and CEO that has caused the drop or if it's just the weakness in equity markets. Technically, the price appears to be finding a bottom having regained the 1753c zone. At current levels, it may be worth a short term buy.
Trading Plan:
Buy OMU at 1797c or better
Use a stop-loss of 1660c to protect capital
Take profit if we see the share trade near 1980c
JSE:OMU Old Mutual Markup In Phase D StartingOld Mutual has been in a TR after a big drop in October 2018. We had a spring on high volume and now a test on lower volume indicating that supply has dried up. Looking for the markup in phase D to the top of the TR range. After a consolidation at the top of the TR, I will be watching for a breakout and phase E to start.