In May 2023, I wrote to you saying I epxect Barloworld to drop.
ANd if you had the patience and just invested in this short, would be paying nicely by now.
Not only because the price is down but also with the time held you could have made some interest income from the short.
Anyway, there is nothing more confirming than when you have a Bearish formation like...
M Formation formed on the daily with Barloworld.
The price broke below and this tells us the supply (selling) is stronger than the buying.
We have other technical signals confirming the downside momentum.
200>21>7 - Bearish
RSI <50 - Lower highs
Target R64.17
SMC
Above the second rounding top is a Buy Side Liquidity Order Block.
This is where Smart Money came...
Cup and Handle formed on Barloworld after the Breakaway gap.
The price then moved sideways and the buyers showed stronger momentum than sellers.
Now with gaps there is a 70% chance of the gap closing which is good for when you're trading it using patterns.
7>21 but <200MA
Target R107.85
WARNING
The Moving Averages are still very close to each other which means...
Level of support is very clear here. Stock trying to close back above the 200dma which would be a good start. Should market remains strong could see it move to short term targets of R92 - R93 and R103. With its exposure to the commodity space and precious metals/copper moving up.. should be a bit of a catalyst for Barloworld to start moving higher again.
JSE:BAW is showing downward momentum based on the stochastic, MACD and EMA's that have just crossed. However, it has been trending upwards since the 26th of March and I will wait for a convincing breakout through the upward trendline before considering a short. If this breaks, we could be looking at a move down towards at least the lows formed at the beginning of...
