Update: Absa Group ABG - 15752c. Negative price action as it looks to be building a topping structure with the incline support going back to the March 2020 lows at risk. Has seen a massive decline from my selling zone +19100c in late March.
Barclays continuing to sell as it possibly requires additional funds for it's acquisition of Kensington Mortgage Co.
A...
JSE:ABG is at an area of value. It can go either way, if there are banks buyers, JSE:ABG might move up. Otherwise, if the sellers are strong they can push the price lower. No position at the moment, and JSE:STXFIN doesn't look healthy.
ABSA printed a hammer off the 200 day moving average
As long as price holds above support, the chart continues to look constructive with an upside bias.
Attractive P/E Currently 7.6
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
The 156ish area has been providing support since January 2022; and it looks like we heading back there again.
But I will be cautious in buying that support this time for the simple reason that price failed to reclaim the previous YTD highs, and is forming a bearish Head & Shoulder pattern in the process. Should we lose that 156 neckline support, it may get ugly.
Absa is looking like a good buy if it can hold the R155 support. Backed by the 200 day EMA some psychological buying could be coming in, adding wind at the back. But a tight stop is required below yesterday's low
Absa has bounced off this support level before; will it this time?
Its the level that's coinciding with the 200dma, so it must hold for the uptrend to remain intact.
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A bearish trend is applicable below 10900. Crossing above this level will negate the bearish stance.
Downside price potential supports the bearish trend.
RSI leaves enough room for further downside price potential.
Trend strength indicates a strong trend gaining strength.
A Bearish Engulfing candle pattern has formed on ABG with yesterday's price move. We can consider a short position if the price continues downwards from here.
Managed a daily close above 15900 for the first time since End-November 2019.
Bumped into the 15900 area in second half of 2021 but failed to have a daily close above this level.
Looking at two targets.
Target range 1: 17000 - 17500
Target range 2: 18200 - 18700
Some of these buyers are have been sitting with a loss in this stock for 3 years are happy to cut loss at break even.
Question is, are they enough to stop the new bulls on a rising interest rate environment?
I doubt it
