Guys, I like the look of tkg. It has been squeezed into the apex of a symmetrical triangle and in the next day or two it is going to break out one way or the other. My bet is up but if you disagree I welcome your opinion.I don't hold it yet but might get in tomorrow.
seems to be behaving like the large majority of SA stocks - in a tight holding pattern. With these low liquidity environments, the selloff is likely to be a big move. But the breakout in any direction is statistically likely to be fake. So my strategy is buy on a big 4 or 5% downward move - providing there are no trading updates or anything, that is. I am applying the same logic to other stocks too - patiently waiting my entry
I sadly don't have much to offer from my side. I do have a set of alerts set up in case there's a big drop in various stocks, some of which I hold and some I don't. One rule of thumb is "try to get blue-chips when the market is temporarily out of love with them". Picked up Anglo with that earlier this year. Smaller companies it's worked with: Grindrod, M&R, Pinnacle, Lonmin. Great capital return so far this year, but holding them for dividends.
Obviously the trick is to correctly identify "temporarily", but since I'm after future divs I don't really care about the price once I've bought them (except for ego), as long as the divs remain likely.
Rams,when I bought my plan was to exit if it fell below the low of 19 July of 63.61. I chose this because this is also just below the support line of the symmetrical triangle.I think I will keep that rising support line as my stop so my stop will also be rising slightly each day. However I am hoping that the resistance line of the symm triangle will now act as support so the price won't fall back below the breakout point (which is at about 65.20 at present, and falling slightly each day). Since the support line and the prior resistance line are very close to crossing(as the breakout occurred at the apex)the support line will soon be higher than the prior resistance line so that level will be irrelevant-I will just use the rising support line as my stop level. I hope this makes sense.