NOTE: Price has broken through the 200dma so trade can only be entered on a reversal. Wait for reversal before trading. We are watching OML & BTI for a short trade as well. Long trades can be considered for AGL, EXX & SOL while the momentum is bullish.
Last week we experienced a nice bounce on the market but don't think all the problems around the world have gone away leaving you to just go long in the market. There is one or 2 long trades to take eg: AGL, BIL, ABL,EXX and SOL . This week we look at a short trade on ASA (ABSA). technically all the indicators are overbought and the price is about to hit the 89 day moving average. If it does not cross through the 89 day moving average and starts to pull back we will short. Fundamentally as we mentioned nothing has changed in the world to create a long term positive sentiment and the market is expected to continue hitting head winds and pulling back. The euro zone is doing bank stress tests and we have no idea what to expect from that.
BEST ENTRY: 132.00
TARGET: 122.00
STOP LOSS: 137.00
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