Investec offers opportunity
INVESTEC has been a laggard, with it share price in a downtrend for the past 10 months.
It’s currently giving a new short-term breakdown, which presents an opportunity for traders to capitalise by selling it short.
again. (INP) – Heading down
on bounces. Sell short Short term sideways. Medium term sideways to down. (Daily) Investec Plc moved up since early August, finding resistance at line 2, but it’s currently breaking down below line 3 support. Warning signs of
a breakdown to come, were negative divergence on its stochastic (on top), as well as very low volume on its recent rally (see bottom window). It’s now breaking down on higher volume (bearish).
Traders sell it short for more short-term (at least) downside.
Look for a drop to R83 initially for partial profit-taking. Then take the rest closer to line 1 at R82.30.
The initial stop-loss is above R89.50. Once the price trades down to R83, lower the stop to a breaking of its prior one-day high.