Trade FirstRand Ltd with Unum Capital.
To get started, email lester@unum.co.za
If you've been following our research, you'll know that we are big on using technology and/or automation to enhance the process of uncovering opportunities and managing risks. On Sunday (see further below) I wrote about a potential buy range for FSR (the unfilled gap which coincides with the 61.8% Fibonacci retracement zone. While FSR is starting to see some buying interest, it is interesting to note that the price action model once again did it's job of alerting us to opportunity. Take a look at the end of day time-stamped reading on Friday 10 January which was as follows: "The reward-to-risk is becoming attractive for a small buy/long position". On Monday 13 January, the share dropped further (by 1.7%) which have traders the an opportunity to build a position. Subsequently, over the following six (6) days, the share rallied by close to 7%. For traders looking to generate cash flow, price action guide is a useful tool in uncovering opportunities. Well done to those who are capitalizing on these cash-generating opportunities.
Previous Post: Sunday 16 January: Trading FirstRand
Compared to the broader market and along with the sector, the FSR is showing relative weakness. The share is trading below it's 75-day EMA which has, for around 10 weeks, started to trend lower. The 61.8% Fibonacci retracement is at ~7000c, which is also in line with the unfilled gap. This can be seen as a provisional buy/long re-accumulation range.
Analysis (Including Chart + Data) as of Friday 14 February at 09h45
Lester Davids
Analyst: Unum Capital
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