Wednesday, December 2, 2015

Some more short setups - KIO and GRT

The resource sector doesn't need any further downside but there's  technical 3LB breakdown coming through on KIO as per the chart below yielding an entry zone on the short side between R40.11 and R42.51 with a stop as a close above R44.90 and downside targets at R35.32/R30.53 and R28.14. Calling a bottom in these things does appear to be an exercise in futility....


Another sector which has been taking strain of late as we lead into the rising interest rate cycle is the property sector and with us already trading breakouts on Refine as well as Attacq,  I'm actually getting a bit concerned about overconcentration in this space. But for completeness, this is the setup on GRT which has now materialised as well. Details as follows: Entry zone on the short side between R23.80 and R24.13 with a stop as a close above R24.45 and downside targets at R23.15/R22.50 and R22.18.

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3 comments:

  1. UnknownDecember 3, 2015 at 6:04 PM

    Got a partial fill on KIO short at R42.51. Will look to fill up the balance tomorrow. Based on property sector concentration risk, also elected not to take a position in GRT

    ReplyDelete
  2. UnknownDecember 4, 2015 at 11:39 AM

    Balance of position filled resulting in an average entry price of R41.41

    ReplyDelete
  3. UnknownDecember 15, 2015 at 1:38 PM

    Closed out KIO after the trailing stop was taken out at R38.00 for a 1-1 profit on an 8.2% price decline

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