ABG trade ideas
ABGThis chart forms part of a larger research note. None of the information posted here (TV) should be considered financial advice.
I’m often cautious when prices have run too hard. Take ABG that made a move from 7500c-7600c all the way to 10500c. We had a long at 7691c with the expectation that the share would merely just add a few Rands – of course – it went much higher than expected. Pullbacks, which we’re seeing now, is healthy and provides another opportunity to get long. If we pull back into 8500c down to 8400c (with strong bids) then I would recommend a fresh long. Stop: 8230c.
ABSA (Buy) swing tradeAnalysis on Daily chart (25 May-20)
RSI has been moving higher since price bottomed on 31 Mar @ 6300
Uptrend developing
TRADE SUMMARY (Swing trade)
Buy @ 7800
Profit target 1 @ 9700 Profit target 2 @ 12000
Stop loss @ 7250
TARGET 1 (short term) TARGET 2 (longer term)
Risk = 550 (7%) Risk = 550 (7%)
Reward = 1900 (24%) Reward = 4200 (54%)
RR Ratio = 3.45 RR Ratio = 7.6
ABGABSA ABG (Current: 7670c) - The share surpassed our previous downside target of 7800-7900c, hitting a low of 7329c, with the low in line with the prior breakout level seen in early April. Now, looking a close above 7800c to trigger a buy/long reversal. Potential price action scenario on chart. SL: 7340. TP: 8550c.
Absa cup & handle formation.There have been tons of cup & handle formations all over the JSE over the last week or so, the one I called on Sasol had great success and it seems that ABSA may be setting up for a break out of its handle shape soon.
I think its safe to long ABSA from here to resistance level of the top of the cup & if its breaks out then we should see good profits.
At the moment it's important to run a good stoploss as the market is still in a temperamental state.
Anticipating a bounce on ABSAJSE:ABG is trading at quite a strong support level. If it fails to break through and bounces off support, I will consider entering a long position. The stochastic also looks like it is gearing up for a turn.
Alternatively, if it breaks through support and forms lower lows, we could be looking at a short position.
One trade you can take to the bank...literally!Last week we saw an upsurge which broke through the Weekly Tenkan. Yesterday and today we saw that level tested successfully and the support maintained. So we should get a continuation of the up movement with 1st target weekly SSB and 2nd target is weekly kijun.
Entry: 15873
SL: 15530
1st TP: 16223
2nd TP: 16348