Trade Alert: Have a look at Bidcorp (BID)

by / / Trade Ideas

The price action in JSE-listed food services group Bidcorp is very interesting at the moment.

Over the last 4 months the share has traded in a sideways to downward channel with a high of R319 and a low of R272.80.

Going back to April 2017, we see a large head and shoulder pattern having developed, with the neckline/support approximately R280 to R285, however with the recent price action, a move above the right shoulder could see the H&S pattern be negated.

Since 01-Nov-2017, the price has repeatedly tested the downward trend line from R318.89 to R299.00, with the candle structure from 21-Dec to yesterday’s close being fairly condensed as buyers hold the price near the top of the channel suggesting a break to the upside is imminent.

With USDZAR oversold, the global growth scenario in positive territory, aligned with an attractive technical setup, the current idea is for traders to take a buy/long position based on confirmation of strong price action today between R297.50 and R299.35 as the price attempts to break the overhead resistance.

These are the trade levels:

Buy BID at R297.50/299.35
Stop-loss: R289
Take Profit: R312 & R318

Lester Davids

Lester Davids

Trading Desk Analyst at Unum Capital
Lester started his career as an intern in the Group Schemes Risk Management department of Old Mutual in 2006 after having attained his National Diploma in Internal Auditing from the Cape Peninsula University of Technology. After a year and four months of service he took up the opportunity offered by Deloitte's Risk Advisory Services for a three-year contract as a Trainee Internal Auditor.

Whilst searching for employment after his had contract expired, he made the decision to document his ideas for his personal passion which was financial markets with a view to build a public profile and record of all work.

His passion for investment and market-related content dates back to his love for reading having started to notice the financial market data alongside the sports pages as a university student in 2004.

Lester is Trading Desk Analyst and has been with Unum Capital since July 2016.
Lester Davids