Wednesday, November 11, 2015

Nedbank, Billiton and African Rainbow short continuation setups

The market has taken a bit of beating over the past few days and technical 3LB short signals are popping out the woodwork at the moment. Here are the graphs of 3 signals currently in play (The 4th one was Lonmin but its in such a slump that the projected take profit point was negative - indicating that this one could well go bust pretty soon!) 
Setup details:
  • ARI: Entry zone between R50.75 and R52.66 with a stop as a close above R54.57 and downside targets at R46.93/R43.11 and R41.20
  • : Entry zone between R199.35 and R204.08 with a stop as a close above R208.80 and downside targets at R189.90/R180.45 and R175,73
  • NED: Entry zone between R213.12 and R217.82 with a stop as a close above R222.51 and downside targets at R203.73/R194.34 and R189.65


    • A bit of caution in that there is a risk of overtrading and creating an over-concentration of risk - especially in the resource space if there are existing short positions, so a better tactic might be to choose between one of ARI or BIL to short here rather than both.



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    4 comments:

    1. UnknownNovember 12, 2015 at 9:05 PM

      Just an update on these setups. Pretty much the same story on each. I look for best possible entries to maximise reward-risk and NED and ARI pretty much didn't pullback enough to get on board and these have now broken away too far from the entry zone to make the trades viable. BIL: is the more irksome one as it did give an optimal entry opportunity which I missed. Again not going to chase though and notching this one down to missed opportunity. Gratifying to see all of these setups firing out of the blocks albeit on what can probably be regarded as overall market weakness.

      ReplyDelete
    2. UnknownDecember 20, 2015 at 10:51 AM

      Hi Richard,

      Thanks for the very useful info on your blog and allowing me access to it. A very Merry Christmas and an even better trading year in 2016 to you and your loved ones. Regards, Johan Kruger.

      ReplyDelete
    3. UnknownDecember 20, 2015 at 10:52 AM

      Hi Richard,

      Thanks for the very useful info on your blog and allowing me access to it. A very Merry Christmas and an even better trading year in 2016 to you and your loved ones. Regards, Johan Kruger.

      ReplyDelete
      Replies
      1. UnknownDecember 20, 2015 at 11:24 AM

        Thanks so much Johan and all the best to you and your family over the festive season as well!

        Delete

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