TRADE CONCLUDED:
In the money stop loss of R1035.00 triggered on the 26 January 2017.
First target of R1060.50 reached. Take half profits and adjust stop loss to R1035. Full target is R1090.
According to the Andrew’s Pitchfork technical analysis tool, Capitec is testing a key support level. Due to the strengthening Rand I expect this support level to hold which could see Capitec bounce from this level.
If it does break this initial support level it is likely to face more support at the 50-day moving average (red line) which could also see it bounce off this level.
The Rand is showing significant signs of strength and a break below R12.00/$ could support a further move higher in Capitec.
Here is the trade summary with Take Profit levels and Stop Losses...
ENTRY: CURRENT PRICE (R1006.72 at the time of writing) or better
STOP LOSS: R991.84
TARGET PRICE 1: R1060.50
TARGET PRICE 2: R1090.00
Once the price moves above R1040.00 move your stop loss to entry, after the first target is reached adjust it to R1045.00.
DAILY CHART
