OUT trade ideas
$JSERMI Rand Merchant Investment Holding. Consolidating This share has been stuck in a trading range between 3360 and 2930 for 280 days. A break above 3360 will be quite an achievement and would indicate a target of 3800 to a level where strong resistance could be met. Currently this one is good for a watchlist only.
RMI - 1W - INVERTED HEAD AND SHOULDERSRand Merchant Investment holdings moving in a sideways channel for some time now. Building a big right shoulder on this inverted head and shoulder formation. Since stochastics are in no mans land i will not enter trade quite yet. You could buy at the bottom of the channel and wait or buy at the breakout to the top which will also breach the 200 day MA, and confirm the Head and Shoulder formation. Targets to the top will be juicy.
Bullish divergence, Head and Shoulders, and Ascending triangle We had a nice bullish divergence pattern on the stock. The share since made higher lows and ultimately forming a head and shoulders pattern. To add to the wind the right shoulder formed an ascending triangle pattern. I;m looking for a break above the 3278c neckline. My minimum target on the trade is 4804c
Checkout the weekly game plan: villagetrader.co.za
An Inverse Head and Shoulders after a bullish divergence on RMIWe have a nice looking inverse head and shoulder pattern on Rand merchant. The formation of the left shoulder and the head, also saw the share had a bullish divergence. I’m looking for a break above the neckline at 3278c. The 30w EMA is looking to cross the 60w EMA (my trend indicators).
JSE:RMI Rand Merchant MarkdownFollowing Rand Merchant Investments distribution and markdown (see posts below) since 2018 price has marked down significantly. Volume has been increasing on declines and decreasing on increases. RMI is weaker than the market. Price is now approaching a significant volume node from the previous markup. However, there has been no significant volume spike indicating a selling climax so price is expected to continue declining. However, one should watch for significantly increasing volume indicating buyers stepping in.
Trend Line supportThere is a trendline that seems to be getting respected from end of August. I expect this to continue and will turn last weeks 3 bearish daily candles into bulls this week. Also supporting this thesis is the fact that on the monthly we seem to be getting rejection from a support area that was initial resistance broken in April 2014.
Entry: 3 small positions close of Friday's candle 3012
SL; 2953
TP1: Short Term 3140
TP2: Medium Term 3240
TP3: Long Term 3530
Risk Management is King. . . .
RMI Is About To Make A MoveRand Merchant Investment (RMI) Holdings is an investment holding company with a portfolio of insurance and investment products targeted at the commercial, corporate, retail and public sector. The group’s history can be traced back to 2010 with the spinning off of insurance assets from Rand Merchant Bank (RMB) Holdings, FirstRand and Remgro. RMI Holdings shares were subsequently listed separately on the Johannesburg Stock Exchange (JSE), although RMB Holdings and RMI Holdings still share the same management team.
Technicals
On the weekly time frame, we can see a corrective structure formation, indicated in pink. The daily time frame, indicated in blue, shows a 5 wave corrective structure which has completed. This would indicate that there should be a break to the upside soon. This break will be the start of wave 4 on the weekly structure.
JSE:RMI Rand Merchant Investments Markdown to start?Last year I followed the distribution pattern on RMI (See post below) which now seems to be completing. Price had found support at the at the bottom of the Trading Range (TR) but was unable to rally back the top of the TR. After some consolidation, we see a change of character bar (Significant reversal bar). RMI could now be ready to break out and start the markdown.
JSE:RMI Rand Merchant Investments DistributionRMI has been looking week since April 2015. After the Buying Climax (BC) and Automatic Rally (AR) was formed the stock has been week and kept moving below the trading range. After some last effort to move to the top of the trading range we see volume drying up indicating that the large players have completed the distribution after the initial increase in volume. The OBV has shown divergence with the price. After breaking the 200 Week MA was broken and retested it looks like the stock is ready to be marked down. The next significant points of interest could be as low as 2662 or even 2257 which is about a 30% decrease in price.
