A Trade Idea On Absa (ABG)

3 thg 9, 2019

This morning at 11:30am, Statistics SA released our Second Quarter GDP figures, showing growth of 3.1% (QoQ) versus forecasts of 2.4% and a previous reading of -3.2%. As a proxy for GDP banking shares set up well for a bullish reversal. This afternoon I am looking at Absa as a short term buying opportunity.

Key Technical Drivers:

- Developing a double bottom
- RSI trending higher, attempting to break above the bullish 50 zone
- Money Flow Index forming a positive, upward trend
- Clearing shorter term upward trending moving averages

Trading Plan:

Buy ABG at current levels, R154.01 (or better)
Use a stop-loss of R149.70 to protect capital
Take profit at or near R161.50