GT247.com Trading Blog

Bid Corporation [JSE:BID] - Post Results Technical Take

Written by Barry Dumas | 25 Aug 2017


Update Post Results Release:

I was amazed when I saw the market reaction when I looked at the chart after Bid Corporation (BID) released their results. To my mind the results were excellent and expected the price to move higher but price broke down as shown in my Scenario 1 chart on the technical take posted on the 23rd of August. Price broke the resistance levels and moved lower to around 29326c before it started to move higher again.

For full results click: HERE

Keep an eye on this one as Bid Corporation (BID) can see buyers coming into the market at this price level and take it higher.

Pre-Results Post 23 August:

Two possible scenarios after release of results 24th August 2017:

On 24th of August Bid Corporation Limited (BID) will be releasing their results and this is always a great opportunity to look for opportunities to place a trade. We do not know beforehand what will happen but if you had a read through Mark Ingham’s note posted on our blog on the 18th of August you can get a good idea of what is expected from the results.

 

Scenario 1.

Negative results come out on Bid Corporation Limited (BID)

If you look at the chart, then you will see the possible formation of a double top which is a great reversal pattern. Take note that the price must break two support levels before you can place a trade, 1 support level being the red dotted line supporting the price upwards and the second support level indicated with the white dotted line at the price level of 30221c.

If this support breaks, then you can trade and your target price will be 28350c.

(DAILY)

Source: Blomberg

 

Scenario 2.

Positive results come out on Bid Corporation Limited (BID)

When looking at the chart below a possible triangle can be in the process of forming but take note the price must break the resistance line (solid red line) before moving higher if positive results are released. The price must move a lot higher from where it currently is for the trade to play out. Your first target price will be around 34318c.

(DAILY)

Source: Bloomberg

 

Always remember to apply your risk management measures before placing your trades as this will keep you trading in the markets.

Chart Source - Bloomberg
 

Read more notes by Barry HERE.

 
 
 
Barry Dumas | Trading Specialist at GT247.com
 

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

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