Swing Trade: Capitec BankCapitec JSE:CPI might also bounce off the bottom of a 100-day regression channel, having just touched a recent horizontal support line.
The Stochastic indicator signalled a trend reversal on 26 February 2021 by crossing up through the slow line from a low base, but the RSI still has to make its way through the 50's
I am also still waiting for the MACD to confirm by crossing above the signal line.
Entry for me would be a positive close somewhere above R1370, with a price target of R1497 but with some expected resistance at the R1457 range.
Longer term target would be R1614 with an exit when it falls below R1310.
Reward: 17.84%
Risk: 4.38%
Ratio: 4.07
Capitec
Possible short on CAPITECJSE:CPI is showing signs that it may retrace downwards for a bit before continuing up. The MACD and Stochastic are both showing downward momentum and if it trades lower than today, the EMA's will confirm a downward cross. Keep an eye on this one for a possible short move to around the 200 SMA support level.
Possible short on CAPITECJSE:CPI formed a dark cloud cover candle pattern a few days back which is a possible reversal signal. The MACD and the Stochastic both seem to be on their way down as well which could serve as confirmation for a downward move. I will wait for it to break the previous support level and then consider a short position.
Short Capitec till R1000Capitec Bank share price just reached a resistance level on bigger time frames like the daily, with addition to the weaker Rand after the unemployment news release stats as well we just saw the price breaking and testing below the trendline,
the share price may go down to just over a R1000 as stated on the chart analysis but it may bounce long again.
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CAPITEC BANK (CPI) DAILY TIMEFRAME LONGUptrends rarely come as crystal clear as this. I feel bad for not having bought this stock earlier even though i stay in South Africa where it is listed. However, for all those traders like me who missed the initial rally, i expect prices to go up further. A good place to enter a long position would be if price retraces to the 134290 price level.
Traders can also enter on the retest of either the 20- or 50-period exponential moving average (EMA), which are both currently acting as dynamic support.
Remember, a trend is your friend (why fight it?)