#FSR perhaps a little much for now - time for reversal? #JSE

17 de out. de 2023First Rand made a lovely pin bar reversal off support on Monday and subsequently followed through today. I like this one as a long here with a stop below R60.00 and a target back to the 50% fib of recent high and low which also coincides with its yearly pivot point (=- R67.00). Also note bullish divergence where RSI is making higher lows even though price made lower lows warning of a rally to come.

Trade idea:
Buy R61-R62
Stop loss, move below R60.00
Target R67

Risking R1/R2 to make R6 for a 6 or 3 to 1 risk reward

Note: 200dma at R65.83 could also be used as a target

25 de out. de 2023

Comentário

I suppose a 'move' below R60.00 was a bit tight but it barely got much below it.. so if you gave it a little more room you should still be ok here. I prefer to see a convincing close below a level before i stop out and the move under R60 was not material enough to warrant a stop loss