I am of the opinion that our Rand rally may be over-done and we could see weakness from here. This would see pressure come in on the financial and retail stocks mostly, but our banks specifically have had a sharp bounce and I expect them to take a breather.
Looking at the chart, the STXFIN ETF is approaching a resistance zone at the 200 day moving average and is also near a multiple top zone. Momentum indicators are all starting to point lower with some negative divergence on the RSI. I am short at R16.96 with a target of R15.45. Risking 2% of portfolio. my stop loss is at R17.62 which if breached would signal a potential break-out to the upside
Robby P
Looking at the chart, the STXFIN ETF is approaching a resistance zone at the 200 day moving average and is also near a multiple top zone. Momentum indicators are all starting to point lower with some negative divergence on the RSI. I am short at R16.96 with a target of R15.45. Risking 2% of portfolio. my stop loss is at R17.62 which if breached would signal a potential break-out to the upside
Robby P