Possible short on JSE:CPI Capitec Bank1 more leg down to complete the big corrective move we saw in December 2018.
CPI trade ideas
History Often Repeats Itself. Down First, Then UpEstablished in 2001, Capitec has become South Africa’s fastest growing bank, and today has more than 7.3 million clients, 720 branches and over 11 000 employees. With shares listed for sale on the Johannesburg Stock Exchange (JSE) in 2002, the bank is renowned for its affordability and simplified model of banking, which has received superb buy in from clients of all income levels. Capitec already commands more than 20% of South Africa’s banking market share and has a market cap of almost R70 billion.
Technicals
I am expecting a repeat of the previous formation. All to often, support and resistance traders get caught buying when the highs break and selling when the lows break, only to watch the price turn and run against them. History often repeats itself and if you have a careful look at these two areas on the chart, you will see a lot of similarities.
The structure that will form here is likely to break to the upside eventually but I expect a reversal soon for wave 3 before more upside will come.
JSE:CPI Capitec Pushing to New HighsAfter very low volumes of the holiday period today there was a strong push to new highs with volume returning. Will be looking for a move to the supply line of the upward stride.
$JSECPIJSE:CPI
After making all time high $JSECPI pulled back and made falling wedge in the process. Looks more upside coming.
$JSECPI - CAPITECJSE:CPI
Was trading in fairly well defined Chanel for most of the year. Brooke higher yesterday and today on open but struggling to hold. Making big engulfing bar so far. Still early but watch for potential reversal towards bottom of the channel
Trend following momentum trade on CapitecLong position entered on JSE:CPI on 23/10/2018 because of confirmation from MACD, Stochastic and cross of the 3 and 15 EMA's.
JSE:CPI Capitec Absorbing the SupplyFollowing on September's analysis (link below) the backup has taken place and the markup is continuing with HH and HL. We see an ease of advance with large spreads. When supply has entered the market there has been effort without response (OBV declining without a similar price decline) indicating the buyers are absorbing the supply. Also notice the narrow spreads on declines.
CPI is traveling in an upward channel having bounced off supportJSE:CPI is traveling in an upward channel, having bounced off the support on 11th October, showing a hammer candle - indicating a possible short term trend reversal. First target is the resistance area at around R1028 and second target R1077
CPI Capitec traveling in an upward channel, bouncing off supportCPI Capitec is traveling in an upward channel, having bounced off the support on 11th October, showing a hammer candle - indicating a possible short term trend reversal. First target is the resistance area at around R1028 and second target R1077
JSE_CPI: Capitec Wyckoff Re-accumulation after DistributionAfter Capitec's (JSE_CPI) trouble at the beginning of the year the stock has been undergoing re-accumulation. It has jumped the creek and is showing Signs of Strength (SOS). The stock has shown prior leadership. Waiting for a back up to 95500 to go long.
