CPI holding Major Major supportCPI has formed a ugly HS pattern over the last 200 trading days.
Bulls will have to hold this level to prevent further downside
CPI trade ideas
CAPITEC - Monthly Observation Capitec ended the month red, down around -12% from the end of May
Bulls will need to get price back over R2072 to have a chance at turning momentum. Below R1975 the chart could roll over and start a down trend on the monthly candles.
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
CPIHow I'm seeing Capitec Bank from a medium term technical perspective.
My comments on CPI pre-market today: Capitec Bank (CPI) – Over the last few months I’ve highlighted opportunities on both the long and short side. The following is an updated view: Two setups seen within a large head and should formation: (1) a bear flag and (2) a smaller head and shoulder structure. Last week’s ‘weekly pivot’ was 205859c of which a break and close below (accompanied with strong offers) could accelerate the risk to the downside. On a fundamental basis, the share has always traded at a massive premium versus it’s SA peers, and continues to do so. A review of the JSE Banks price-to-book (see chart that follows) notes the group trading at an average of 1.46x vs CPI trading at 6.81x.
CapitecA break on that incline/trendline support (which is also coinciding with the 200dma) could point to 1600 next!
CPI - Moving UpwardsStochastic, MACD and EMAs have all crossed upwards on JSE:CPI , signaling a long position.
CAPITEC - ShortAll three of our momentum indicators are signaling a short for JSE:CPI . If it breaks the lows of 20 April we will aim for a target of the R1710 level.
CPI - LongJSE:CPI has recently bounced off of a support level and seems to be on its way up again. The stochastic, MACD and the cross of the 3 and 15 EMAs are al confirming this move.
Capitec- INSANELY EXPENSIVE!Outperforming it's peers, not only has Capitec printed new highs but is also approaching historical forward PE highs. Valuations are getting stretched. Ahead of earnings, the price does seem to be finding some resistance at very overbought levels. For the life of me, I can't understand the current price and can't fathom where investors see value at current levels. Maybe reality kicks in after earnings and sanity prevails. There is some technical support at R2200 but I wouldn't be surprised to see it much lower. So if you can find some scrip, pay the premium and short these insane levels. First target R2200.00.
Capitec - Sideways Consolidation BreakoutJSE:CPI has been trading in a sideways consolidation area since Jan. With yesterday's price action it broke out of the top of the channel, which could mean a good opportunity to go long.
Capitec - LongJSE:CPI is looking good for a long position based off of the three momentum indicators.
CPI: time for a pullback?Above 199200 supports a bullish trend direction.
Trend strength indicates a strong trend gaining strength.
Fading downside price momentum (see the lower panel) supports the bullish bias.
RSI leaves enough room for further upside price potential.
At the lower range of the Bollinger Bands. This increases the likelihood of a pullback.
Capitec Pullback - daily climatic topCapitec is looking rather weak at the moment after a climatic top formed at the 2195.00 area.
A pullback to its long term trendline around 1845.00 could provide a good buying opportunity if one is patient.
*Disclaimer* - ideas shared in the above is for educational purposes only and IS NOT trading or financial advice.
CPI: time for a correction?Shorting CPI always remains very risky.
The price action is at the upper range of the linear regression channel pattern.
This increases the likelihood of a mean reversion trade.
The angle of the trend is also too steep at a 57-degree angle.
A 45-degree angle is regarded as healthy and hence a correction might occur.
The price action is also overbought.
Downside price momentum supports the bearish trend direction.
CapitecTrendline breached;
Bear flag technical formation developing now, which if broken can take price to 1500 next!
Capitec - trend-line bounceJSE:CPI has tested a trend line multiple times since last October. It is currently bouncing off of this line again and we could see an upward move if it doesn't break through downwards. The stochastic and the MACD are both confirming this momentum. The EMA's briefly crossed yesterday, but have since uncrossed again. If it breaks above yesterday's levels, I will enter a long position.
CAPITEC- It must have been love, but it's over now...Personally I don't get why the stock made these extreme new highs but fortunately, we trade what we see and not what we think. SO "technically", the price has breached the 50 day moving average and is making a second attempt at breaking the new short term support at around R1734.00. A convincing breach and close below this level sets up much lower targets for the rocket that is well and truly coming back down to earth. If was holding CPI, I'd be climbing out. If you find short scrip, short it. The RSI is broken, the stochastics are floppy, momentum is down...SELL SELL SELL.
Our Club PortfolioLast year, on the 14th December 2020 we wrote an article about our Investment Club software and our in-house company portfolio which we run on that software. As we said in that article, running this portfolio has proved to be a highly motivating exercise for our staff.
Since 14 December last year, there has been just one change to the portfolio, when the Clicks share price fell at the beginning of 2021, we decided to take advantage of the situation and bought additional shares – which brought our average cost for Clicks down.
Aside from this one change, the portfolio has remained the same.
Capitec has appreciated sharply as that company increased its market share and continued to grow rapidly. Our investment has grown by 31% since December last year and is now up over 100% since we first acquired the shares. Capitec has been a been a remarkable investment since it was listed in 2002 growing a hundred-fold from 180c to R1800 per share. Consider it's chart.
Transaction Capital is up almost 60% over the 10 months since December 2020 and we believe it will continue to grow. Its two primary businesses - mini-bus taxis and buying up debtors’ books - are both likely to continue benefiting from the conditions that prevail in South Africa. The company is very well run and conservatively managed.
Prosus has fallen out of favour with institutional investors since we bought our shares mainly because of the clamp-down by Chinese authorities on the business of Tencent and also because of the recent highly complex transaction that Prosus executed with its parent company Naspers. We think that both of these negatives will cease to impact the share price in time and that Prosus will continue to release shareholder value and benefits from its acquisitions (like the recent acquisition of BillDesk in India). It is our intention to buy more Prosus shares when we have sufficient funds so as to bring our average cost down.
We regard Clicks as an iconic share which should be accumulated on any weakness and should be a part of any portfolio. The company has proved that it is almost immune to national calamities like the pandemic and the civil unrest of July. We were happy to buy more of these shares at the lower prices which prevailed in March this year. We regard it as a highly defensive and conservatively managed growth share that will continue to expand its store base and grow steadily.
Afrimat is somewhat risky because it is exposed to commodity prices, but the company has executed an amazing transition from being a construction company to being a producer of base metals and minerals. Other construction companies, like Aveng and Murray & Roberts, were gutted by the destruction of the construction industry following the 2010 World Cup. Afrimat has managed to completely re-invent itself showing remarkable perspicacity and management acumen.
You can see that our approach is typical Warren Buffett. We try to find high-quality blue-chip shares and buy them when they are out of favour with the big institutions. We are not in any sense traders, we are investors. Like Buffett, when one of our shares falls, we celebrate because that enables us to buy more at lower prices and bring our average cost down. We did that with Clicks, and we are about to do it with Prosus.
Overall, the portfolio is up just over 40% since its inception and the whole process of running an investment club has become highly motivating for our staff.
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All information and data contained within the PDSnet Articles is for informational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet Articles are based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any comment or opinion for any reason.
Capitec making new highsThe stock came back into the lower box but stayed at the top of the box. Buyers look like they are still coming in. If the stock breaks back to the higher box and closes back above the R1875.38 record high close. The stock made a new highs as it moves back to a higher box. DOing all this on rising volume which is encouraging
Capitec Bank - Weekly Chart Worth NotingCapitec Bank (CPI, 170863) | My most recent long idea was from R1499 on 05 May with the target of R1700 reached on 02 June. I'm not recommending a long here but having reviewed the weekly chart in recent months, I've noticed an inverse head and shoulder technical formation that has developed, with both a breakout and a back-test that held during mid-July. Shorts, caution.
CPI long opportunityJSE:CPI looks like it may be gearing up for an upward move. After a recent pretty successful Cup and Handle pattern it has retraced downwards to the top of the cup, tested that level and then bounced back up again. If it breaks above the high created on Friday, I think we could see it moving upward to at least the highs of mid-June, if not higher.
