CPI trade ideas
Capitec showing strong upside since break in downtrend to R2040Cup and Handle formed on Capitec since it broke above the Downtrend.
Now that the price is above the brim level shows strong momentum up.
Indicators also confirm upside
7>21
Price<200 but moving back to it's elastic equilibrium level
RSI>50
Target R2040.00
ABOUT THE COMPANY
Capitec was founded in 2001 and is headquartered in Stellenbosch, South Africa.
The bank has over 15 million clients as of 2023, making it the third-largest bank in South Africa by number of customers.
Capitec offers a range of banking products, including savings accounts, personal loans, credit cards, and insurance.
The bank is known for its simplified and transparent fee structure, which includes low transaction fees and no hidden costs.
Capitec uses advanced technology to provide its customers with a seamless and convenient banking experience. The bank has a mobile app that allows customers to manage their accounts, transfer funds, and pay bills.
CPI Resistance confluence zone reachedCPI is trading at R1800,00 which falls into the confluence zone of both its 6 month EMA and bearish channel resistance
Capitec long position looking goodWe entered a long on JSE:CPI based off of the crossing of the EMA's and the turning up of the stochastic and the MACD. The trade is looking good so far with it being about a 3rd of the way to the target at 1925. It may find a bit of resistance at the current level, but I think we can potentially see a nice profit at the target if this momentum continues.
Capitec - Possible Support ZoneCapitec has retraced to an area of interest...
Bulls will want to long from this zone ( R1718-R1780) with a SL below the recent low. Loss of this level will open a leg down targeting R1514
Capitec showing strong downside to come to R1,528Inverse Cup and Handle formed on Capitec and the price has just been on a strong downside trend for the last year.
We had a break below the brim level with indicators showing strong negative divergences.
200>21>7
RSI>50 - Mixed
Target R1,528
ABOUT THE COMPANY
Capitec is a South African retail bank that was founded in 2001 and is headquartered in Stellenbosch, Western Cape.
The bank has been recognized as one of the fastest-growing retail banks in the world, with over 16 million customers as of 2021.
The bank offers a range of low-cost products and services, including savings accounts, loans, and insurance.
In 2017, Capitec was named the best bank in the world by the Lafferty Global Awards, which recognized the bank's focus on customer service and its commitment to financial inclusion.
The bank has a market capitalization of over ZAR 200 billion as of March 2023.
Capitec weaknessJSE:CPI undercut the "few weeks" support level. JSE:CPI is also trading below declining key MAs. Bearish in my view.
Capitec- Bear flagAfter the big 1 Dec drop, the price has tried to consolidate. the problem is, that it is consolidating at the lower end of that big red bearish engulfing candle. I think she bumps her head here and then moves sharply lower.
Capitec finding some support around R1800The finance sector had good 2022 Capitec was amongst the laggered. Now seemingly finding some support 1816. Proving an interesting low risk long trade with a roughly 4% lower with a target at the prior highs. Some caution and risk management is required when trading on the laggered group
Capitec Lower lowJSE:CPI has formed a lower low, and its trading near an area of value. Hopefully it's not going down.
CapitecThe Head & Shoulder worked like in the textbook. Now we have a potential retest on our hands. Will buyers push through the resistance to reestablish the uptrend; or will it (resistance) hold and we get further downside?
*I'm on the fence.
Smashing New RecordsWith interest rates high, and continually increasing in an attempt to curb inflation, banks will be the biggest beneficiaries. Capitec bank continue to smash new records, outclassing it's peers or the biggest 4. It has recently added Mercentile Bank to its balance sheet and it will be focused on business banking, also it has launched Capitec Connect, a mobile network solution with data that does not expire lol. More growth and new records in the pipeline. Technically, the stock has completed wave 4 Correction and set to commence wave & impulse, which i anticipate termination around 280000 - 320000. Still, new records to be smashed lol.
CAPITEC going down further due to a Reverse Cup and Handle Since the last analysis, Capitec is continuing to look Bearish.
It's formed another RARE formation called a Reverse Cup & Handle. This is where the handle is on the left side.
Now that the price has broken below the new Brim level at R1659.23
My second target for the bank is at R944.16.
Side note: All the South African banks are showing major downside to come still, not just Capitec. I'm short three of the banks...
Capitec - Hard FallI gave out a stern warning about Capitec's overvalued price. I did say that this stock will be in a crazy nosedive very soon. Price has been falling from the R2 380 highs. We are now approaching the R1 500 zone which needs to be broken.
I'm loading Capitec shares very aggressively at these zones:
1. R550
2. R200
LOOK BEFORE YOU LEAP!!! INVEST WISELY!
CapitecJSE:CPI released results, good/bad/whatever, this week. The stock rallied a bit a day before the results, but the market hasn't been kind to JSE:CPI and other banks. Currently the stock is trading near R1560/share. R1530-ish once acted as an area of value, resistance turned support. Will the "support" level hold?
Capitec exhibit signs of weaknessJSE:CPI broke below R1900-ish last week. The stock continue to show signs of weakness, if the downward move persists, the next potential support level is near R1500/share. The financial sector is still under pressure with the other banks trending lower as well.
Capitec, weak.Following last week's selloff, JSE:CPI is now trading below what looked like a support level. On the weekly time frame we still have few days too trade, the stock might still redeem itself. Otherwise the next potential support level is near R1700/share.
Capitec - Short triggered from double topA double top formed on JSE:CPI over the past few weeks. With today's big gap downward, the short has been triggered. Hopefully it doesn't go straight back up and close the gap, but that remains to be seen.
Pair trade: Selling CPI vs Buying INPMarket neutral strategy.
The price action is retracting from the upper range of the Bollinger Bands.
The 200-week sma acted as some major resistance.
The price action might target its 200-day simple moving average.
The first target is about 3.5% from current levels.
CPI - Potential LongUsing our fractals strategy, JSE:CPI has signaled a possible long position coming up. The price broke out through the descending resistance line and, if it breaks the high of yesterday, we will be entered into a long position. The stochastic isn't at the most desirable location but it could still play out nicely.
CapitecI'm previously bearish on Capitec, but this has proved to be such a stubborn stock to 'short'.
We now have an upside break here which may target 2400.
