Trade Alert: Have a look at Bidcorp (BID)
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
Take Profit: R312 & R318
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.