#3. Kumba Iron Ore: I was unfortunate to see my recent short/sell recommendation on KIO being taken out by it’s stop-loss. The reality with trading on a short term basis is that one is harldy ever able call the exact top or bottom and that one can only take a high probability opportunity to sell around the top and buy around the bottom. If you haven’t participated, these multi-year high levels may be an opportunity to do so. At above 44000c, both the MACD and RSI signal bear divergence while the price is elevated well above it’s 50-day (37638c) and 200-day moving averages (30825c). Alternatively, traders could look to pair KIO (as a short) versus South 32 (as a long).
S32 / KIO:
#4. Vodacom: The share continues to trade in a sideways to downward channel, offering opportunities to participate on both the long (buy) and short (sell) side. At currently levels, the candle structure and moving averages suggest a move toward the lower boundary of the channel, and an opportunity to take a buy/log position below 10900c, using a stop-loss of 10650c and take profit target of 11400c.
#5. Mediclinic International Plc: Since 21 February, the share has started to consolidate above it’s 50-day moving average. This is a positive development as it suggests as medium term change in trend and an opportunity to participate in an upside share price movement. In addition, the share price has also developed a bull flag formation of which a break up at current levels would see the price make a go at 6800c and potentially the 200-day moving average at 7200c. Entry will be a break above the downward trend line at 6000c, using a stop-loss of 5570c.
#6. Astral Foods: Our last call on ARL (from 14350c on 28/01) saw the share make an immediate advance toward the target of 16000c. Since then, we have seen the share price test year-to-date highs of 17923c which is being followed by a short term consolidation. My next course of action is to monitor whether the price retraces to near the incline support or at least at around 16500c to 16300c, a level at which trader may want to set as a provisional buy/accumulation zone. Here, the stop-loss would be 15400c with a target of 19000c. Time Frame: Medium Term (2 – 6 months).