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
CPI trade ideas
The break is insight Cup and handle/Bullish flag/Head & Shoulders
The stock looked like it was breaking on Friday. However, closed back within the flag/Handle. A nice cup and handle formation on the chart at the moment, which is also a head and shoulders plus a bullish flag. That’s quite some wind behind this trade. A break through 147837c. Confirms the trade for me. Even better above the 152500c.
For now I wait for the break through 147837c
Capitec Looking very good Cup and handleBeautiful cup and handle on Capitec. If The stock break the 147852c even better if we can take out that high. I will potentially add into my position with a limit order a few points above the 152500c. Projecting the higher of the cup makes 216057c The break of the bull flag(handle) is also a nice entry. Perhaps adding to the position once the stock breaks the 147852c resistance level. And again as it takes out the high. Patience is needed here this could take a while. Price action on the daily chart is looking good. The stock holding the 50d EMA as support. Making a higher low. A fair bit of volume coming in. Since it closed above the 50d EMA. There's some good wind at the back
Capitec Looking very good Cup and handleBeautiful cup and handle on Capitec. If The stock break the 147852c even better if we can take out that high. I will potentially add into my position with a limit order a few points above the 152500c. Projecting the higher of the cup makes 216057c The break of the bull flag(handle) is also a nice entry. Perhaps adding to the position once the stock breaks the 147852c resistance level. And again as it takes out the high. Patience is needed here this could take a while.
Price action on the daily chart is looking good. The stock holding the 50d EMA as support. Making a higher low. A fair bit of volume coming in. Since it closed above the 50d EMA. There's some good wind at the back
Capitec Analysis R1500 has been set as the price to beat. Capitec has been tame recently but gladly no aggressive dips. The share has continued to respect the uptrend support and getting very close to breaking through this support and sustaining into horizontal trend. Our hope however is that it doesn’t break and hopefully breaks resistance instead. However this is a good time to stock up on this stock at this predictable level. Capitec still has a lot of growth ahead of it if history is anything to go by.
Capitec Analysis Capitec has gradually come down and hit a minor support line created by a peak from 05 November. I do not have faith in this specific support line but it does give possibilities of a rebound. If it doesn’t hold however it wont come as a shock. Generally the stock is still doing fantastically well as it has a great distance from the up trend line. This is a good position to expand holdings and partially buy in at this point.
Capitec Analysis Capitec is on a bit of a go slow lately making this a good opportunity to partially buy in and expand holdings. Should the price dip some more below 1280 it will be another good opportunity to buy in. Currently the share price is still a good distance away from the uptrend line which leaves us very little to worry about at this point.
On the next rally we are hoping to go comfortably beyond the R 1440.00. From where the share price is now, this will be a 9.75% increase.
Possible short on CAPITECJSE:CPI is showing signs that it may retrace downwards for a bit before continuing up. The MACD and Stochastic are both showing downward momentum and if it trades lower than today, the EMA's will confirm a downward cross. Keep an eye on this one for a possible short move to around the 200 SMA support level.
Potential Cup and & Handle breakout on CapitecWith this potential cup and handle, Could we see the reaching all-time highs at R2000+ for CPI. Especially considering that the Bank has now entered the home loan market. The trade does offer quite a decent Risk-reward ratio.
Interesting to note that the 30w EMA looks like it wants to cross the 60w EMA
Capitec Analysis Another positive week for Capitec as we race to the R 1300 share price.
Seems that it is on its way to pre covid prices and hopefully the share price can grow from there. Long term still looking very strong and this minor dip could be a good opportunity to increase shareholdings.
Im terms of numbers, for now we are looking to comfortably surpass R 1300, with the eventual goal being the peak at R 1500.
Capitec Analysis Fluctuations happen. So no need for worry yet as Capitec takes a bit of a dip from 1200 to 1140. We have support lines at 1100 and the 1030 to 1050 zone so a rebound or reluctance at these points can be expected. If these support lines dont hold however, there is still a very strong uptrend support that has held up very well and could be a significant rebound point if hit in future as we have seen time and time again with this specific share. The potential is set and we are still looking very positive for R1600 share price hopefully in the very near future.
Capitec Analysis R 1 200.00!!! That is the number we are gunning for at the moment. Capitec has today broken the R 1 100 resistance comfortably and now approaching to close the Gap created in April at R 1 200.00. Still a long way to go but everything looking positive so far. As long as the dips stay far from the uptrend support line, we can stay positive and right now the share price is miles aways from the uptrend support.
We might see a little pull back tomorrow, perhaps some investors pulling out to buy a nice expensive bottle of whiskey to celebrate the surge, but nothing to be too concerned about.
Long term looking very stable to say the least.