Trading Capitec Bank: Actionable Areas

Trade Capitec Bank with Unum Capital.

To get started, email lester@unum.co.za

Update: Deeply ultra short term oversold conditions have lead to buying interest and a rebound from Monday's low around R2710. At current levels, the share is trade below it's declining 8-day exponential moving average which is a first potential resistance range. Bear in mind that the price has the ability to overshoot this level on the upside therefore the buy re-entry range is shown slightly above the declining 8-day EMA. Above that the declining 21-EMA could stand in the way of a further advance. For now, buy re-entry levels are considered at much lower levels.

***CPI Daily Chart as of Tuesday 08 April at 13h37***

Previous Post (Thursday 03 April): Trading Capitec Bank: For Shorts, A 16% Decline

The move is in line with the price action model at the time, which warned traders to avoid chasing and looked for a potential failure to hold the prior session/range highs.

Most recently we also discussed CPI in the note: 2 Risk, 2 Opportunities. The link is as follows: https://www.unum.capital/post/cpi-two

The current chart, reflecting a 16% decline from the last note is shown below.