capitec bank shares correctiondo not rush to buy the dip you will be caught on the wrong side of the market, we are in wave A the correction which is subdived into WXY,
CPI trade ideas
CPI - Over extended CPI has made a huge move since the break of its bull flag. But it should remain on the watchlist should it start to go sideways or form another bull flag. The other big 4 banks made some serious moves on Thursday/Friday while CPI had a seller.
Capitec Bank - After a 6.2% and 14.9% Gain, Reduce Some- Currently fluctuating around R1592-R1594
- After my 05-May idea to buy, CPI is higher 6.2%
- From my initial, 29-March idea, it is higher by 14.8%.
- The price action remains strong, but for conservative traders: Reduce some of your position at these levels.
29/03 idea (trading view link):
05-May idea (trading view link):
Cup & Handle on CapitecJSE:CPI has formed a great cup and handle pattern on the day chart. It goes all the way back to December 2019 with the top of the cup being formed on the all-time high that was reached in December 2020. If we successfully break this high, I think we could see a really nice upward move from there.
Capitec BankCurrent Price: R1499
I understand that you may 'hate' the share. I also understand that it's strength is perplexing amidst a potentially excessive fundamental valuation. I'm also NOT trying to be smarter than you as a fundamentalist who has a deeper understanding of the business but the chart structure suggests a consolidation base and the potential for a break to the upside. Note the price trading on it's Pivot (P), with a bull flag (some work to do) where prior resistance of R1450 has turned to support. A daily close above R1520 sets us up for the next level while a close below R1440 invalidates the idea. Both the RSI and MACD are in bullish regimes while the price has started to shift 'away' from it's near-term 50-day EMA. Traders can also go long on a break of the bull flag, with a target range of R1610 to R1640 and R1700 at an extension. Stop-loss: R1422
Capitec, trailing stops from hereThis trade is almost at target. Switching to a trailing stop loss from here.
Bull flag testedCPI is pulling back to the bull fag trend line. Long idea is still on as long as R1320 holds.
Capitec Analysis Capitec seems to have hit a cap at R1500 and is currently caught between R1500 resistance and R1300 support. Its holding up pretty well as compared to the previous time the share price was at this level. It seems there is a general consensus in the market that this is a comfortable price level for the share. A decent time to buy as well. Better to buy in closer to the R1300 mark though. If the previous are anything to go buy, we should eventually break R1500.
Capitec BankA chart from my weekly research report. Message me for full trade details, including whether it's long or short.
CPI - Bull flag breakCPI is still stuck in it's bull flag formation. A close above R1390 triggers a long idea with a stop loss below R1320. First target at R1520 and full target at R1700
CPI - Showing signs of resistanceStill stuck in a bull flag and after a decent trading statement CPI is showing signs of resistance at R1395. Above R1400 triggers the long idea otherwise we remain stuck in the flag. First target on the flag is R1480. Close below R1320 cancels the bull flag idea.
My thinking is Capitec is getting ready to leave the station. Capitec has been sitting on the bench at the station for a long time in its bull flag formation. Parhaps a close above 140 would mean its ready to buy its tickets and leave on the long road?
* Weekly
- Stochastic has short period crossing, as well as MACD
* Daily
- Just Just touching the trend line - first real break attempt (Don't know if we need a little more oomph to pull it off)?
- MACD Already crossed - yet in the negative half still
- Stochastic is moving up.
I would wait for a clear breakout.
Please, guys - this is my very first idea, please comment and help with the analysis - as I'm still very new at this!
Would love to hear your thoughts?
B
Capitec Bank Holdings bullish flag.Capitec has created a bullish flag, which is a continuation pattern. I'm expecting it to reach a new high of R1910 after price breaks out of the flag.
Swing Trade: Capitec BankCapitec JSE:CPI might also bounce off the bottom of a 100-day regression channel, having just touched a recent horizontal support line.
The Stochastic indicator signalled a trend reversal on 26 February 2021 by crossing up through the slow line from a low base, but the RSI still has to make its way through the 50's
I am also still waiting for the MACD to confirm by crossing above the signal line.
Entry for me would be a positive close somewhere above R1370, with a price target of R1497 but with some expected resistance at the R1457 range.
Longer term target would be R1614 with an exit when it falls below R1310.
Reward: 17.84%
Risk: 4.38%
Ratio: 4.07
