NED - ON THE EDGE OF AN UPWARD BREAK?The RSI shows NED breaking slightly upward of the previous trend. Will it continue upward towards R110 or turn sideways? Nerves of steel needed here.
NED trade ideas
Nedbank - Breakout from Bearish PennantSouth African banks are bearing the brunt of the economic impact of COVID-19 and lockdown.
Fundamentals:
Prior & ongoing recession
Weak ZAR
Low interest rates (limited profitability)
Decreased business activity
Pervasive credit losses & impairments
Technicals:
Breakout from bearish pennant
Decreasing RSI (not oversold yet)
Share price below 6SMA & 20SMA
6SMA crossed 20SMA to the downside
A retest of the March lows is possible.
Target 1: 78.00
Target 2: 67.30
Stop Loss: 113.51
Our banks are robust and well-positioned to weather the current economic storm. Their price-to-book ratios are currently incredibly low and make for an attractive long-term play. The short-term outlook, however, is bleak.
Im liking the banks!We closed above the weekly tenkan. Failed to actually cross it, indicating bearish weakness. Two weeks ago on the weekly we had a convincing bullish candle which pierced that same tenkan,so a test of that break was coming and we seem to have got it this week.That bullish weekly candle also confirmed a higher high after reaching a low mid August. This could be a major trend reversal from a bearish trend that started end of June.
Entry: Close of Friday candle 23269
SL 23266
TP: 25061
Nedbank bottom of channelHoping Nedbank can bounce here
Disclaimer: The views provided herein do not constitute financial advice.
Please feel free to comment, critique or add to my view, I welcome feedback, whether it agrees with my views or not.
This idea is based on my strategy, please consider your own before using it in any way. Always use a stop-loss and manage risk.
JSE:NED Nedbank Watching Banking Stocks Similar to Standard Bank and Firstrand Nedbank is making higher highs. There have been high volumes between R80 and R110. After the significant selling climax, there is some room in the recover before the previous area of volume around R200. This gives a good risk: reward ratio if the last point of supply (LPS) is used to define the stop-loss.
NEDBANK analysisgreetings in this chart we have two possible scenarios if the weekly candle closes above the marked support i would take this market as bullish and draw a counter trendline on the daily chart but if the market breaks the support and turns it into a resistance i would sell the market to the lower trendline
NED - Monthly Support ZoneWe may derive the following from the Monthly NED chart:
1. Price has dropped significantly over the past few months (see linked idea) and has reached a short target.
2. At present, we have reached a major monthly demand zone (orange box).
3. It is however, pre-mature to buy. Wait for an opportunity to present itself first - being a reversal formation (bottom) .
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
JSE:NED Nedbank Markdown ContinuationAfter distribution and a backup (BU) to the trading range the markdown of Nedbank started. After the breakout of the BU trading range we now have a retest. Volume increases on the declines and negative divergence on the volume RSI there is some momentum pushing price down. The relative strength is declining and NED is weaker than the market.
NED - Target Reached (Update)We may derive the following from the Weekly NED chart:
1. Price has reached our key support and first target (see linked idea).
2. We can now take some profit as price may either recover or continue lower.
3. Wait for an opportunity to present itself first. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
NED - Short Still RunningWe may derive the following from the Weekly NED chart:
1. Price has back tested the main trend line and failed to move back to the upside.
2. Price now appears to be completing a correction. A break should result in further downside.
3. Monitor price action and be patient before trading.
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
