On the daily chart we can see evidence of an overbought stochastic starting to lose steam and moving downwards. Price has also retraced 100% from its previous major low. The daily candles are not fully convincing either way with the long tail and wick on today's candle reflecting a fair bit of uncertainty.
On the support and resistance chart we can see a relatively lateral resistance level in play and off which price appears to be reversing from around the R85.00 level.
BAW released a trading statement this morning and following an initial surge the market gave back its gains eventually closing in the red in line with the overall market.
Some mixed signals in this setup so we are going to grade the trade at 60% of risk value and will look for a quick bounce off resistance with an entry at around the current R84.00 level with a stop as a close above R85.00 and a target at R81.00 for a 3-1 target reward-risk
Good opportunity for entry and price moved firmly in the direction closing well into the profitable area. With a very bearish candle painting on the day and the stochastic now crossing downward over its signal line from oversold, this down move may gain some momentum. We'll look to exit half of the position at the original target level of R81.00 and then look to ride the balance as far as possible using a trailing stop with an eye on the next support level around R77.50
ReplyDeleteAnd both the R81.00 and R77.50 levels were breached today closing a quick and profitable trade
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