26 May ANG, AMS, MDC, RDF, BVT still firmly entrenched in their downward trends – iTrade Fantasy League Update
You might wonder why we are not fully invested in the top four shares in every sector according to the Facebook voting lists in our iTrade Fantasy League. You select the shares, but we select the timing and stop-loss levels to limit losses and thereby enhance the profits of the portfolio. Here is a wrap-up of the shares we are still waiting to invest in.
Resources: AngloGold Ashanti and Anglo American Platinum
In most cases we look at the Stochastic and MACD technical analysis indicators as well as the trend and Moving Averages. You can see that both shares are still firmly entrenched in their downward trends. We will wait until the Stochastic red line at least crosses above the blue line and go above the 20% area, the bottom quantile. Stochastic is a very quick trend change indicator. Sometimes we will wait for the slower MACD to confirm the trend.
(We have modules about technical analysis under “Learn” on www.SanlamiTrade.co.za as well as “Recommended Books”. Just register as an iView client and if you indicate you heard about us on Facebook it is free until the end of the year.)
Industrials: Mediclinic, Redefine and Bidvest.
Again these shares are still firmly entrenched in their Bear trends (downward trends). We also use the technical analysis research reports provided by Trading Central on the Sanlam iTrade website (free for all our clients for three months). Bidvest is an example of their research. There is a great tutorial video on www.SanlamiTrade.co.za, just click on the Trading Central link under new.