SAP trade ideas
SAPPI Long OpportunityJSE:SAP formed a bullish harami off of a descending support line which also coincides with a support level from early 2015. It is looking very promising for an upward move.
SAPPI late reversalSappi (SAP) took a hit after shock Q2 results yesterday. A late afternoon reversal saw the stock trade 4% off the low, indicating some buyer interest near the R60.00 level. The market has clearly decided to price in poor Final results (Sep 19) in one day so I think a relief rally is most certainly possible.
From a technical perspective, yesterday's late reversal had still honored horizontal support which i would use as an entry level "zone" to get in. Weak hands are still being flushed out so I wouldn't be surprised to see R55.00 on the bid. In a case a like like this, i would keep a stop loss quite wide and the trade size a bit smaller than normal. With the market having priced in the worst (in my opinion) the potential upside reward on a long trade outweighs the downside risk.
Before yesterday's move, I had major resistance at around 83.00, however, after yesterday's sell-off, I would now target R75.00 which is the new overhead resistance which still relates to around a 22% price move.
Previous support turning into resistance Previous support turning into resistance - confirms weekly bearish bias
SAPPI LTDSAPPI LTD DAILY Timeframe
Reasons For Entry:
- Ending Diagonal
- RSI Divergence
- Wave 5 Entry
Target is set based on Quasimodo Sell Entry at Supply Zone
Everything Good Yearns Patience And Time
Disclaimer: Trading stocks, commodities, futures and forex has a level of risk and may not be suitable for all investors.
This Page has many charts to show setups and patterns for illustrative purpose and no set up given should be taken as a recommendation. This is purely what I see in the market, trading the setups is at your own discretion and risk.
JSE:SAP: Sappi is Being DistributedSAP has been in a trading range after a Buying Climax (BC) in May 2017. It looks like a Wyckoff Distribution is taking place. There is increased volatility and volume on the declines and low volume on the up moves. The declines has been larger and quicker than any of the declines in the uptrend leading to the BC . Increase volume is seen mostly at the top of the trading range. We could already be in the mark down in Phase D but will have to see how the range develops further. If this is Phase D we should see the start of the mark down soon.
Waiting for daily reversal Should the daily overhead resistance hold - will offer another opportunity to add to my long term short (see previous weekly chart = double top)
Looking at a short position on SAPJSE:SAP formed a bearish engulfing candle pattern yesterday which could signal a reversal. This seems to be whats happening at the moment.
For the lat couple of months it has been making lower lows quit regularly. If the price breaks through the latest lower low from the 16th of Jan, I will consider entering a short position.
SAPPI - Crossing major trend support Sappi momentum indicators flagging trend weakness.
Stock price crosses major support R 75.50 / R 76.00...price set test the R 62.00 / R 60.00 levels over the medium term.
SAP weekly chart looking ominous Double top forming on the weekly. Need to wait for Friday's candle to see if the R73.50 support line holds. Should that fail, it then triggers a short and we could potentially see the R45 region being tested in the weeks to follow.
Long term support on SAPJSE:SAP is bouncing off of a long term support level at the moment having formed two doji candles which generally signify a loss of momentum.
The stochastic has also turned up which could mean a reversal.
If it continues up tomorrow, I will consider entering a long position.
You'll be happy with Sappi at R80.00Interesting observation on Sappi (SAP.JSE). The bottom of the range coincides (almost) with the 200 day moving average. Becomes a STRONG buy at R80.00. buying here makes it easy to place your stop loss as a breach of the 200 day moving average would signal a bearish break lower. Take profit level is the top of the sideways channel.
SAP LevelsWill allocate off these levels
- Bias to the downside here
- Price has broken yellow trend-line
Flash note: SappiSappi (SAP) chart from Lester Davids, Unum Capital Trading Desk analyst.
Daily Chart: Now at resistance and looking slightly stretch.
Weekly: Building an Inverse H&S
