JSE:CPI broke below R1900-ish last week. The stock continue to show signs of weakness, if the downward move persists, the next potential support level is near R1500/share. The financial sector is still under pressure with the other banks trending lower as well.
Following last week's selloff, JSE:CPI is now trading below what looked like a support level. On the weekly time frame we still have few days too trade, the stock might still redeem itself. Otherwise the next potential support level is near R1700/share.
A double top formed on JSE:CPI over the past few weeks. With today's big gap downward, the short has been triggered. Hopefully it doesn't go straight back up and close the gap, but that remains to be seen.
Market neutral strategy.
The price action is retracting from the upper range of the Bollinger Bands.
The 200-week sma acted as some major resistance.
The price action might target its 200-day simple moving average.
The first target is about 3.5% from current levels.
Using our fractals strategy, JSE:CPI has signaled a possible long position coming up. The price broke out through the descending resistance line and, if it breaks the high of yesterday, we will be entered into a long position. The stochastic isn't at the most desirable location but it could still play out nicely.
We have entered a long position on JSE:CPI based off of the turning of the stochastic and MACD as well as the crossing of the 3 and 15 EMAs. The target for this trade is the 230 level.
Capitec ended the month red, down around -12% from the end of May
Bulls will need to get price back over R2072 to have a chance at turning momentum. Below R1975 the chart could roll over and start a down trend on the monthly candles.
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
How I'm seeing Capitec Bank from a medium term technical perspective.
My comments on CPI pre-market today: Capitec Bank (CPI) – Over the last few months I’ve highlighted opportunities on both the long and short side. The following is an updated view: Two setups seen within a large head and should formation: (1) a bear flag and (2) a smaller head and shoulder...
All three of our momentum indicators are signaling a short for JSE:CPI . If it breaks the lows of 20 April we will aim for a target of the R1710 level.
JSE:CPI has recently bounced off of a support level and seems to be on its way up again. The stochastic, MACD and the cross of the 3 and 15 EMAs are al confirming this move.
Outperforming it's peers, not only has Capitec printed new highs but is also approaching historical forward PE highs. Valuations are getting stretched. Ahead of earnings, the price does seem to be finding some resistance at very overbought levels. For the life of me, I can't understand the current price and can't fathom where investors see value at current levels....
JSE:CPI has been trading in a sideways consolidation area since Jan. With yesterday's price action it broke out of the top of the channel, which could mean a good opportunity to go long.
