SLM trade ideas
SANLAM finding support on the 200 moving average.JSE:SLM broke the downward trend that it was trading in since July 2020 when it formed higher highs in early November 2020. Since then, it has been consolidating and has found significant support on the 200 Moving Average. I will wait for a breakout of the consolidation zone, and if it breaks through the 6000 level, I will consider a long position.
Consolidation BreakoutWish I got around to posting this earlier this morning but unfortunately got distracted! The 3-month consolidation above the 200 Daily SMA has finally broken out. The initial breakout target is at the Monthly S2 near 62.90 with the full target near the Monthly S3 @ about 65. Stops should be considered at 57.70
JSE Life Assurers - Volatility Compression at the 200-day SMAJSE Life Assurers | Volatility Compression At The 200-day Simple Moving Average (SMA) | Our filter has recognized technical similarities between the four major life assurers, where the price has been consolidating in a tight range around the 200-day SMA following an extended period where the price traded in a downward trend below the SMA. We recognize the 200d as being a key trend indicator where a shift above or below this level may lead to a substantial move in either direction.
SLM - strong break through descending trendlineWith Friday's upward move, JSE:SLM has convincingly broken through a descending trendline that it has been obeying for quite some time. If it continues upward, I will consider a long position all the way up to the previous resistance level around the 7000 price range. The stochastic, MACD and EMA's are all confirming this upward momentum.
$JSESLM forming a bearish rising wedge formationSanlam has spent the last couple of weeks consolidating in the form of a bearish rising wedge formation. The move higher off the lows has appeared on lower volume which gives bulls little confidence in this move. Should we manage to see a convincing close below the rising wedge at +- R56.00, this rising wedge could play out with a downside target of R41.50. What is also interesting to note is that the stock has battled to make any progress above the declining 50 day moving average (purple line) which has been respected by the market. Keep a close eye here as the target is quite rewarding should this pattern play out in textbook fashion.