RETEST and H&SWe might see this guy going up to retest which is gonna create the right shoulder that will force this to complete the H&S
SLM trade ideas
SLM Long on bounceSLM bounce on major long term support
expect retraction
markets showing signs of bullish sentiment
will monitor this week for confirmation
SLM - Lower lowsJSE:SLM has broken through and upward trend as well as a fractal level and is busy forming lower lows which could be a sign of trend reversal. It is looking good for a short position with lots of downward momentum.
Pair Trade Setup : Short Sanlam vs. Long Standard BankSanlam has outperformed Standard bank by a margin of 27% from the lows we saw in May of this year. The chart of their relative ratios ( SLM / SBK ) has now approached an important area of resistance (0.46 to 0.477) which has been in place for the last two years. If you take a look at the individual charts of the underlying counters, one will notice that Sanlam has once again turned off important resistance levels between R82 and R85 while Standard Bank is not trading too far away from its 200 week moving average which has provided important support for the stock over the last two years. In Addition, the Standard Bank daily chart is trading in a triangle with support some R2 away from current levels. This would support my view on the pair trade as i believe that Sanlam will under-perform Standard Bank going forward, or at least, there is sufficient reason to believe that Standard bank has a better chance of climbing higher than Sanlam at this point in time. In Addition, the MACD indicator has made a lower high even though price made a slightly higher swing high which further reinforces my view that price action is weak and should see the pair ratio revert lower.
SLM -> PE ratio: 22.2x DY : 3.85%
SBK -> PE ratio 9.8x DY: 5.69%
From a fundamental perspective, Standard Bank's Price to Earnings Ratio is not demanding whilst also boasting a much better Dividend yield.
Suggested ratio entry point : 0.463 - 0.475
Suggested ratio stop loss: closed above 0.480
Suggested ratio exit point: 0.427 to 0.433
To be entered at a ratio of 1:1. i.e 100k nominal short position in Sanlam vs. 100k nominal long Position in Standard Bank.
Assuming we entered this pair at 0.465 today, used a stop loss at 0.480 and locked in profits @ 0.43, we are risking a move of 3.2% against us to make a potential profit of 7.5% for a risk reward ratio of just over 2.3x
SLM- The share has had a very strong push since mid-August. Take caution not to extrapolate the current strength.
- Overhead resistance - may 'pop' above before retracing
- Price action similar to the prior periods highlighted.
SanlamEconomic Times has reported that Sanlam is negotiating to buy an additional stake in Shriram Capital. Sanlam already owns 26% of Shriram and it represents something around 10% of their valuation. The sale coincides with an exit from TPG Capital, a 10% Shriram shareholder. According to the Economic Times, the deal is valued between R2.8bn and R3bn. Softer ZAR is driving this trade short, and with a moody's outlook possibly falling to negative we could expect price to fall in a range between R77 and R74 in the short term.
SANLAM at strong resistanceJSE:SLM has reached quite a strong resistance zone at around the 8200 level. It seems to be struggling to break through which is also being confirmed by the stochastic.
I will enter short if it is confirmed.
Sanlam looks to be gaining some momentum to end the yearHaving been relatively flat through 2019, Sanlam may have finally built some momentum to end the year. October has been a great run thus far let us hope it can carry this through quarter 4.
Is Sanlam JSESLM Readying to Push to R85?$JSESLM Sanlam Limited has been testing the 81-82 level for close to one year with limited success of breaking through. So far it is holding up well above the R80 mark. Will see how this plays out but there is strong resistance on the R81 level. Watching it for now.
SLM: correction unfolding?Price action remains in a declining channel.
MACD bearish crossover.
Downwards price momentum.
Time to exit: +/- 15 October 2019
Previous idea also on the chart.
SANLAM possible down moveJSE:SLM formed a bearish harami a few days ago which might be signalling a reversal. It is looking like it so far and the stochastic is confirming it. I will, however, wait until confirmation on Monday before entering a short position.
I'm giving Sanlam a wedgyAnother very simple set-up here... SLM making lower highs to form a flat bottomed wedge. I'm looking to short the top and I expect the price to make its way back towards the base. I don't think it will go all the way there so I'll be looking for somewhere near R73.00. The price is looking a little over-extended on the Stochastic RSI so If it breaks back above R79.00 I will pull the trigger (orders are in at 79.30). The stop loss is also easy to figure out...a break out of the wedge will be the signal to exit. I would say around R82.00 www.unum.co.za
SLM- Sanlam possible 123 up move coming Sanlam is making a 123 reversal pattern that could see the stock trade up to R75.40 if we can get a close above the neckline of R72.45
This stock has made similar patterns in past observations that has worked nicely.
RR : 1:2
SLM - lining up for a bullish price action?Improving bullish trend according to our proprietary technical scoring methodology.
Broke above its 21-day simple moving average - first bullish break in the last 22 days.
MACD bullish crossover (middle panel) - first bullish break in the last 38 days.
ADX (lower panel) - giving an indication that the recent strong bearish trend might be ending.
An early indication from the OBV (on-balance volume) that money is returning to the share. This might support a bullish bias.
Only regarded as a temporary correction. Adjust risk accordingly.
Time to exit: +/- 6 September 2019
SANLAM - Bullish Harami at SupportJSE:SLM is showing a bullish harami pattern at quite a strong support level. We could possibly be looking at a bullish reversal if confirmed.
Sanlam - We only just beganSanlam is a name that keeps coming up on our systems.
Extremely negative price divergence is at play with strong weak stochastics pointing to expectations of further pain ahead.
I am of the view that Selling into strength and strength will pay off!
Engulfing & Resistance Breakout on SLMJSE:SLM has broken through a descending resistance with an engulfing candle. Opportunity for a long if it confirms by breaking through fractal level.
SANLAM - Potential DownsideLooking at Sanlam, we may derive the following from the weekly chart:
1. Price sold sharply, as at the current weekly candle.
2. Price generally sells off at the 80-82 zone.
3. It is appearing more and more likely that price will continue lower.
4. Pay attention to the blue trend line.
5. As always - maintain your risk management.
Let's see what happens.
Note: The views provided herein do not constitute financial advice.
$JSE-SLMJSE:SLM
Testing strong resistance at 80.00.
Clear sideways consolidation. Break up will bring more upside.
