A monthly chart of Bidvest [JSE:BVT] shows it having dropped to an important support area, making it a low-risk buy for investors, as shown on its chart.
BIDVEST (BVT)
Investment Strategy: Hold if in/Buy if not in
Long-Term Trend: UP
(Monthly)
Chart Setup: Bidvest has sold of this year together with other large-cap findi stocks, but has now reached an important support level at line 2 (R183), as well as line 1 at R185 now.
- Its rising 20-month moving average is also there to provide extra support.
Its monthly Stochastic is oversold which is bullish.
Strategy: All in all, this is a low-risk entry point for investors to buy/add to existing holdings.
Target: Upside target is to R245 (its April/May highs) for partial profit taking. And take the rest on a retest of its all-time high at the R250 level.
Stop-loss: A monthly close below R179.
- Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za
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