$STXRES Satrix Resources getting hammered-16% and counting since 21 August. Frustrating sitting with any resource ETF's or shares right now. You need a lot of patience and a long term view, or this will be a money losing exercise almost all of the time. Always been a volatile sector of price takers. Feast or famine, and currently it looks more like famine than feasting.
STXRES
#BHG BHP - Previous resistance now support?This chart does not need much explanation. Previous resistance turning into support = change of polarity. Watch BHG here as a reversal off this R566-R568 level could turn out to be a nice buy with the opportunity to use a fairly tight stop loss. This is where we also find the 61.8 fib retracement of the most recent swing highs and lows.
#STXRES #JSE - Resources bouncing off Long term levelsResource are very likely the place to be over the medium term. Satrix Resources which is a basket of the biggest resource stocks on the JSE is bouncing off a massive level of previous long term support which has now become support (Change of Polarity). This is a great area to accumulate for the long term in my opinion. Will be happy to review after a few months but for now 3x hold of support shows the bulls mean business.
Constituents below:
ibb.co
$STXRES Satrix Resources. Testing channel support (again)This channel is holding up pretty well with the top and the bottom of the channel being tested multiple times.
Best case scenario is support holds up once again and and we test the top of the channel
Worst case is this ends up being a bear flag, support breaks to the downside and we test support levels lower down (blue lines)
If you go long, impliment a stop loss. This is a bear market after all.
JSE:STXRES Resources Index Breaking Upward StrideThe drop in resources has been unexpected to me (See posts below). I would expect gold stocks to improve in a risk-off environment. However, this has not happened. The theory seems to be that due to the selloff in other stocks large interest has also been caught on the wrong side of trades and have had margin calls and needed to raise cash quickly. They have done this in holdings that were profitable and easiest to sell which have been the safe haven areas such as gold and bonds. Further, with the price war in oil that has also affected the resources index. The start of the trading range looked like a reaccumulation range with the volume on the increases and higher highs being made. Price also held above the yearly pivot point as has been the case since 2017. However, the last increase was on very low volume which should have been a pre-warning to what is to come. A high volume attempt to go up on the last green bar had no response and then followed the decline. The upward stride has been broken and resources have turned bearish.
JSE:STRES Resources Index Continuing Upward TrendThe JSE Resources Index has been steadily trending higher since 2016. After a pause at the end of 2019 it is again breaking higher. The break has come on low volume over the holiday season but could push higher quickly as volume returns to the market.