Capitec Vuvuzela with bullish bias & strong fundaments to R2,485

Capitec has been in this Broadening Pattern (Vuvuzela) formation since November 2023.

It breaks into higher highs and lower lows. But the overall momentum and trend channel is up.

It will continue trading in this range until we get a breakout of the resistance or support. My bet is it will first trade to the top of the range at R2,485.92.

Capitec has always been the outlier compared to the other banks with very little correlation. WHen it does well, it runs up regadless what the bigger banks are doing.

Also fundamentally, it doesn't seem to follow suit with the Big 5.

Firstly, Capitec announced a substantial 15% growth in headline earnings, which reached R9.7 billion.

This increase was driven by growth across various sectors of the bank, including a notable 124% profit surge in its business banking sector and a significant increase in net lending, investment, and insurance income​

Also, Capitec has been actively investing in innovative digital solutions and client rewards programs, which have contributed to its strong performance.

They introduced a variety of digital payment solutions like Apple Pay, Samsung Pay, and Google Pay with zero transaction fees, as well as their own secure online payment tool, Capitec Pay.

So ye, big up to an innovative unclipped wings bank like Capitec.