Capitec Bank
Current Price: R1499
I understand that you may 'hate' the share. I also understand that it's strength is perplexing amidst a potentially excessive fundamental valuation. I'm also NOT trying to be smarter than you as a fundamentalist who has a deeper understanding of the business but the chart structure suggests a consolidation base and the potential for a break to the upside. Note the price trading on it's Pivot (P), with a bull flag (some work to do) where prior resistance of R1450 has turned to support. A daily close above R1520 sets us up for the next level while a close below R1440 invalidates the idea. Both the RSI and MACD are in bullish regimes while the price has started to shift 'away' from it's near-term 50-day EMA. Traders can also go long on a break of the bull flag, with a target range of R1610 to R1640 and R1700 at an extension. Stop-loss: R1422
I understand that you may 'hate' the share. I also understand that it's strength is perplexing amidst a potentially excessive fundamental valuation. I'm also NOT trying to be smarter than you as a fundamentalist who has a deeper understanding of the business but the chart structure suggests a consolidation base and the potential for a break to the upside. Note the price trading on it's Pivot (P), with a bull flag (some work to do) where prior resistance of R1450 has turned to support. A daily close above R1520 sets us up for the next level while a close below R1440 invalidates the idea. Both the RSI and MACD are in bullish regimes while the price has started to shift 'away' from it's near-term 50-day EMA. Traders can also go long on a break of the bull flag, with a target range of R1610 to R1640 and R1700 at an extension. Stop-loss: R1422
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