ABSA almost at 12month high

[#1]

ABSA is heading for R119-00, 12 month high. Whats the plan? Comments?

[platsak]

There was some articles in the Sunday Papers stating that a run of up to 40% can be expected in banks. Volume has dopped of substantially. Think we can maybe see a correction/pulback. Anyone shorting or considering shorting this share?

[#3]

I'm considering shorting it, I think that a share that basically hit the 12 month high is likely to come down, but there are other factors to consider

[SimonPB]

a share hitting highs should be bought not sold .. the trend is clearly up ..

[Ninja]

The correct strat is to wait for the pull back and the jump on board for the up trend. If however you want to trade I would say it is unlikely that Absa will trade above 123 before a pull back. (not impossible though) Therefore go short with a stop at 124 and take the risk.

[barry_1]

Interesting question about when a share hits its all time high.I'm not speaking of warrants specificly now but of shares and installments.Simon is right it should be bought.Seems not many of the forumites have been through a recession before!....First of all as far as i can find out the highest price now seem to be R137.00 on the 31/Jul/2007....The question then must be asked how to proceed....Absa can be considered a blue chip because of its management and dividend paying policy over the longer term.BLUE CHIPS were over many years were expected to average a twelve percent capital gain compounded yearly on that price,so now it works out that the capital value should have been on the 31 July 2008 EQUAL TO R153 and on 31/Jul/2009 EQUAL TO R171.So only when it gets to R171 can it be considered at an ALL TIME HIGH again.

[Theater_Cat]

Dr Roffey said a few months ago not to touch banks with a barge pole!! He missed a good run

[ACEP_]

Wow, Barry, u astound me again. Mama Mia...

[barry_1]

methinks don't touch Roffee whth a barge pole!!!!!!

[#10]

cos the greed factor has totally clouded the judgement