The recent monster rally staged by the Rand certainly has put pressure on our rand hedge stocks and CFR did not get off lightly.

The weekly chart clearly shows the 9 weeks of pain since hitting highs near R130.00. The selling pressure has now seen the price test the bottom bollinger band at 2.1 standard deviations. Yesterday’s price action could signal a potential short term reversal and should we get a strong close today, I expect the price to revert back to the mid-point just above R120.00.

The local currency has started to come off the boil a little over the last couple of days and any further weakness should be supportive our long trade.


As far as my technical indicators are concerned, the weekly data shows a very over-sold price but already showing signs of new buying demand. Downward momentum has flattened out so we should see a bit of a relief rally from current levels.

If you want to view the full trade, please sign up for FREE Stock Alerts below.

If you would like to automatically copy my trades, you can mail me on or call me on 011 384 2927 and we’ll get you copy trading.

Here’s to profitable trading,

Unum Capital (Pty) Ltd

PS: If you are not yet following our Stock Alerts, test them out with a demo account , or dive in the deep end with a live account.


To get your hands on my latest Stock Alert subscribe for FREE below!

Receive our research, trade recommendations and advice in your inbox