Short the Nikkei

Trade summary:

Stop loss                           19830

Entry                                19280

Target price 1                   18810

Target price 2                   18230

The Nikkei index has broken below the highlighted trend line and has gone to retest  this trend line and it seems as if the Nikkei will continue to weaken during the day, if it goes below 19280 level, I see a great opportunity to short the trade.

Short Standard Bank

Trade summary:

Stop loss                           17000c

Entry                                16235c

Target price 1                   15450c

Target price 2                   14100c

Towards the end of June until mid-August Standard Bank has had a positive rally and on Tuesday the price closed outside of the channel as depicted above.  This move outside the channel triggered a negative movement for the share price. I am expecting further downward pressure and I anticipate that the share price should trend lower and to reach the levels stipulated above.

Long DRD

Trade summary:

Stop loss                           430

Entry                                520

Target price 1                   640

Target price 2                   740

I have seen the DRD share price consolidate from the month of June to August but at a slightly inclining trend. On Monday it broke out the channel to test a resistance level @520c. There is some great upside for this trade if it holds above 520c, if the Gold price continues to appreciate as seen in recent weeks, I anticipate the share price to move towards 640c first before charging towards 740c.

Short Exxaro

Trade summary:

Stop loss                           13285c

Entry                                 12790c

Target price 1                   12104c

Target price 2                   11377c

Exxaro has be in a rally since the end of June this year and seems to be currently trading around the resistance level that it reached in mid-April and I anticipate that there will be a retracement from these levels to the 23.6% Fibonacci level (12104c) from the peak  of 13279c and could continue to weaken and reach the 38.2% Fibonacci level (11377c).

Short First Rand

Trade summary:

Stop loss                          5770c

Entry                                5421c

Target price 1                   5211c

Target price 2                   5042c

A retracement has started on First Rand and on Monday (4 September 2017) we found the price close outside the channel and yesterday it tested the first Fibonacci level at 23.6% (5421c). Should it continue to decline in value, it should go to 5211c and possibly as far as the 50% Fibonacci level (5042c).

Remember... trade responsibly, your capital is at risk and trading can lead to capital losses.

Until next time, I wish you profitable trading.

 All charts sourced: Bloomberg