Investec ShortJSE:INL has broken through a support level and is possibly going to make a move downwards. As always, wait for confirmation.
INL trade ideas
Investec consolidation breakoutJSE:INL has been trading in a parallel consolidation channel since December but it seems to be breaking out with today's price action. If it confirms with tomorrow's price action, it could be setting up for a short position towards the support zone around the 7700 level.
Short on INLJSE:INL has encountered resistance and will most likely turn downwards for a short.
The stochastic is also turning down through the 80 which is a possible reversal sign.
Two months in and $JSEINL still top of the pops for 2019And that brings Feb19 to an end. Two down, ten to go! JSE:J200 ($JTopi) having a great start to the year - up 6.92% YTD. Top performer is still Investec Ltd, at 15.9% YTD. Question remain - time to take some profit or does it still have some legs?
Analysts still forecasts Investec to be in the region of R112 over the next 12 months and with the planned unbundling of the Asset Management division into a separate listed company, I personally still believe there will be some value unlocking.
Looking at the long-term monthly graph, I believe that the trend is still very much it's friend currently. Next target looks like the 50-month moving average at R98. Should we see a breakout from the top of the wedge, R102.70 could very much be next stop, with R114.50 then becoming my next target.
Should the trend (not remain our friend and) turn, watch out for R83.22, with R78 then becoming a very critical resistance level.
Cup and Handle Trade on INL & INPJSE:INL has formed a Cup and Handle pattern which is a bullish continuation pattern.
"As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right-hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance." (from Stockcharts.com)
I have entered a long position on today's price action as it has broken through the level at the top of the cup.
To establish the target, I have measured the depth of the cup and extrapolated it upwards which goes all the way to the next resistance level.
THE EXACT SAME STRATEGY CAN BE APPLIED OT JSE:INP
$JSEINL Investec setting up a shorting opportunity?Investec has had a nice little run of late, but it is now consolidating at resistance formed by the 89 & 100 day moving averages. Last time this happened in November, we saw the share come under significant pressure. Price has also stalled at the 61.8 fib retracement of the most recent swing high and low. Volume has been very light on the way up which makes me question the recent rally and we also see the RSI indicator now forming divergence and turning lower. I would look to get short between R87 - R89.00 using a significant close above R89 as my stop loss. Target would then be the most recent lows between R76-R78.
Investec setting up a short opportunity? $JSEINLInvestec Ltd has retraced back up to it's 89/100 day moving averages which previously provided resistance in November last year. We have seen price consolidate under these moving averages after having retraced 61.8% of the move from its most recent swing highs and lows. RSI indicator is starting to form some divergence and turning lower. Looks to me like we should at least get a retest of the most recent lows between R76 - R78.00. I would be looking to short between R87 and R89, using a stop loss as a convincing close above R89.00 (more conservative could use R92- 200 day ma) as a stop.
