Investec looking strong for upside to R126.66W Formation formed (small but evident).
The price has broken above the neckline, showing strong buying and demand.
The indicators look good for upside on the peripheral.
7>21 - bullish
Price>200MA
RSI>50
1st Target R126.66
ABOUT:
Investec Limited was founded in 1974 and is headquartered in Johannesburg, South Africa.
Investec is a diversified financial services company, offering a range of products and services including asset management, wealth management, and specialist banking.
The company operates in three main geographies: South Africa, the United Kingdom, and Australia.
Investec has a strong reputation for innovation and has been recognized for its entrepreneurial approach to financial services.
In 2020, Investec had a revenue of ZAR 23.3 billion (approximately USD 1.7 billion) and employed over 10,000 people worldwide.
Investec
InvestecI had previously anticipated that JSE:INP could break below the resistance level. The stock is moving in the opposite direction, invalidating the previous short idea.
A long trade can be initiated here, although it would've been ideal to buy near the breakout level, targeting the recent highs.
TRADE UPDATE: Investec Plc not looking good but the 200MA ...Cup and Handle formed on a larger scale.
21>7 - Bearish
Price >200SMA - Bullish
RSI >50 -lower highs - Cautious
1st Target R142.49
Unfortunately, it's not looking good for the trade. It's close to the Stop loss.
It's for this reason I lowered the stop loss level below the 200MA. An order block formed which created Sell Side LIquidity. This is where Smart Money comes in and sweeps in all the sells (Buyers - stops) and Shorters (entries).
So if Smart Money is buying into this, we could get some upside. But like I said the trend has turned down and we mustn't get our hopes up.
Ninety One Looking good to R50.82 and about the companyCup and Handle formed which is what we were waiting for.
The breakout was quite vigorous and didn't give us the buy signal until Friday where the price opened above the breakout.
Now that the price came down a bit gives a great buy signal A conservative trader will continue to wait for the price to retest a bit further.
But an opportunist, will buy ASAP.
7>21>200 - Bullish
RSI>50
Target R50.82
ABOUT THE COMPANY
Ninety One (formerly Investec Asset Management) was founded in South Africa in 1991 by Ian Kantor and Bernard Kantor.
The company manages over $140 billion in assets for clients worldwide, including institutions, financial advisors, and individual investors.
Ninety One has offices in Africa, Asia, Europe, and the Americas, and employs over 1,800 people globally.
In March 2020, Ninety One became a publicly traded company, with a listing on the London Stock Exchange.
Investec still showing great upside to come to R120.57 Falling Wedge is still in play with Investec.
We see 7>21 SMA - Bullish
Price >200SMA - Bullish
RSI >50 -lower highs - Cautious
1st Target R120.57
General Info:
Investec is a South African-based financial services company listed on the (JSE) in 2002.It operates not only in SA but also in the United Kingdom, and Australia and has a wide range of services including banking, wealth and investment management, and asset management.
There are also investment options including equity and fixed income funds, private equity, property and infrastructure funds.
Investec consolidationFinancials were promising prior the release of the Phala Phala report, political shenanigans are over now (hopefully). Took a long position as JSE:INP crossed R103 but the share price then got stuck in a limbo. The position is still alive, waiting for a breakout on either direction, preferably on the up side.
InvestecJSE:INP JSE:INL had an incredible run in 2021. Like most stocks, it's experiencing challenges in 2022. The stock has been trending lower; above R75, it can find support. Below R74 things could be worse. Our charts show that the financial sector, and banks, is weak. Not hopefully that R75 will hold but the market will decide.
Investec consolidation breakoutJSE:INL has been trading in a parallel consolidation channel since December but it seems to be breaking out with today's price action. If it confirms with tomorrow's price action, it could be setting up for a short position towards the support zone around the 7700 level.
Cup and Handle Trade on INL & INPJSE:INL has formed a Cup and Handle pattern which is a bullish continuation pattern.
"As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right-hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance." (from Stockcharts.com)
I have entered a long position on today's price action as it has broken through the level at the top of the cup.
To establish the target, I have measured the depth of the cup and extrapolated it upwards which goes all the way to the next resistance level.
THE EXACT SAME STRATEGY CAN BE APPLIED OT JSE:INP
A Look At The Bigger Picture For InvestecInvestec plc is an international, specialist bank and asset manager that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa, and Australia as well as certain other countries. Investec plc is the controlling company of the majority of the group's non-Southern African operations.
Technicals
I have indicated the monthly structure in black and the weekly structure in pink. I expect the weekly structure to complete after either 3 or 5 waves to the downside and will be looking to trade the long from the end of both waves. Wave 5 of the weekly structure has a really good target and I will not miss the entry after a reversal confirmation.