Old Mutual trading styles for buys - Target R13.70There are many different ways to trade Old Mutual looking at this chart.
1. Reversal trader
They will wait for the support to establish as it's done at R10.00 and then will buy and hold until it reaches the top of the range.
2. Breakout trader
WIll wait for the price to go up and complete the W Formation where it will breakout and trade up to R13.70
3. High probability trader
This one will have to wait the longest for the price to not only close above the W Formation but also close above the Downtrend and the 20MA and 200MA.
Either way, Old Mutual does look bullish as things stand.
Enjoy!
OMU
OLD MUTUAL #OMU Ready preparing to break?After teasing with a break to the upside Ood Mutual (JSE:OMU) has remained within the medium term pennant, and is currently wedged between the 50MDA and 200MDA. A dialy close above or below either one of the two could confirm the direction of a break. With BV/S at 14.23 the bets is on for an upside break, target the Feb high with stops below 12.00, or 11.60
SA Banks & Financials packing their bag for a short trip south Well, everything on the globe is being marked down, and this includes SA banks & financials, despite much improving underlying fundamentals.
Prices for all of them are now under their 5EMA which is under their 15EMA. In this weak sentiment environment I'm looking for them to give back another 5% or so before bargain hunters like myself can't resist the risk. JSE:SBK target the R113-R115 area JSE:FSR target R48ish JSE:ABG target R116-R118 JSE:NED who knows and even JSE:CPI looks ready to retrace to the R1450 area.
Conversely stated, in the current environment the probability of these counters going up 5% is a LOT lower than them going down 5%.
In the background the fundamentals are improving - manufacturing data, bankserv transaction data, etc - so if they do dip nicely that would present a great opportunity to buy, imho. In short, take your profits and fall back :-)
Happy trading!
UC
JSE:OMU Old Mutual Breaking Out?It is an unusual time of year to see this type of volume in the market but it seems 2020 is an unusual year. A number of stocks are showing some volume pushing the price. Old mutual has had two relatively high volume days at the end of last week pushing price higher from a lower volume back up (BU) to a last point of support (LPS). There has been a sign of strength (SOS) on higher volume. We are now looking for a break and markup to occur. Price could reach R20 so there is a good risk-reward for the trade.
JSE:OMU Old Mutual Making Me WaitI have been waiting for the markdown to start in Old Mutual (See posts below) for a while. However, price has been testing the 2000 level but has been unable to break it. With a significant bar with some volume the last two days the new year might finally bring the markdown.