Bidvest: Bull Move Continued. Pattern Play With 26900c Target

Research Notes For 09 to 13 June > https://www.unum.capital/post/r0913june

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Below is an extract from our 06 April note (Volatility Equals Opportunity). At the time, Bidvest gave clients the opportunity to accumulate between R202 and R212. Now Trading at R250!

Bidvest Current Chart Reflecting An Ascending Triangle Formation With A Target of 26900c. Temporary Failure/Stop-loss below 24200c.

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Previous Post (Thursday 29 May): Bidvest Group: Strong/Bullish + Technical Probabilities Over 3x Time Frames

Here's a breakdown of the price action for BIDVEST:

• The 7-day trend is indicated as "Strong."

• The 14-day trend is "Bullish."

• Comparison: Both the short-term (7-day) and slightly longer short-term (14-day) trends indicate bullish momentum. The "Strong" reading on the 7-day chart suggests significant buying pressure in the very recent period, which aligns with the broader "Bullish" sentiment over the past two weeks. This suggests a reinforcing upward trend across these shorter timeframes.

  
  

• Potential Trading Approach for Bidvest: Given these readings, a trader might approach Bidvest with the following considerations:

  • Short Term (Approximately Next 1 to 10 Trading Days): The model notes, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

    • Approach: Acknowledge the ongoing upward trend. Be mindful of potential short-term pullbacks if the price fails to sustain above prior session highs, which could present tactical short opportunities.

  • Medium Term (Approximately Next 2 to 4 Weeks): The model indicates "Attempting A Bullish Reversal Following A Consolidation Phase."

    • Approach: The medium-term view suggests that the current upward movement is likely a bullish reversal following a period of consolidation. This reinforces the bullish sentiment seen in the 7 and 14-day trends and suggests potential for continued upward movement.

  • Long Term (Approximately Next 5 to 8 Weeks): The model states, "Recently Advanced From A Sideways Consolidation. If It Doesn't Hold Prior Session Highs Then Consider Potential For Retracement To Retest The Range Breakout."

    • Approach: The long-term perspective indicates a breakout from a sideways consolidation. While the immediate trend is upward, failure to hold prior session highs could lead to a retracement back to test the breakout level. This suggests being bullish but also aware of potential pullbacks in the longer term.

    
    

  

  
  

• Overall Trading Considerations for Bidvest:

  • Reinforcing bullish momentum: The "Strong" 7-day trend aligning with the "Bullish" 14-day trend and the "Attempting A Bullish Reversal" in the medium term suggests a generally positive outlook.

  • Short-term caution: Be aware of potential tactical short opportunities if prior session highs are not maintained.

  • Long-term perspective: The breakout from consolidation is bullish, but watch for potential retracements if short-term support levels fail.

In summary, for Bidvest, the current view is bullish across the short to medium term, with a long-term outlook that is also bullish following a consolidation breakout, although traders should be aware of potential retracements.

Lester Davids

Senior Investment Analyst: Unum Capital