This morning, two shares on the local exchange have flashed across my radar as potential trading opportunities:
First up is Pioneer Foods Group which has been consolidating in a downward to sideways trading range since late November 2018 and may potentially see an upside break based on the following key drivers:
– Candle structure and price action relatively strong with the price making higher lows and holding near the channel highs.
– On Friday we saw the Relative Strength Index (RSI) indicator test the 55 level, the highest print since 10 December.
– The price is looking to regain the 10, 20 and 50-day simple moving averages.
– Further confirmation of an early short term momentum run would be strong intraday price action (support) above the 8178c level.
Based on the above drivers, traders could look to take a buy/long position utilizing the following levels:
Buy PFG above R8178c, upon confirmation of the strong price action alluded to above
Take Profit Target: R8800c
At current levels, the share price action of investment holding company Brait suggests that the share may be poised for upside in the short to medium term. Over the past six trading sessions the share has made higher lows and higher highs while breaking to the upside of a falling wedge formation. The downward trend line going back to the peak of 3941c on November 2018 is also being tested and may attract short to medium term buyers. The 2707c level currently serves as resistance and strong intraday price action near these highs may be further confirmation of the recent price strength.
In addition to the encouraging price action, the Stochastic and Momentum indicators point to potential gains.
These are the trading levels:
Buy Brait at 2710c or better
Take Profit Targets: 2853c and 2964c