Petri Redelinghuys, trader and founder of Herenya Capital Advisors
BUY: TFG
TFG recently released a robust trading update, with retail turnover growth of about 31%. Despite this good news, the company has been under the hammer from a large-scale seller for many days. The way we see it is that TFG is now trading firmly in a support zone with a backwind of good trading results, and eventually the large seller exerting downward pressure will step back. Therefore, we like the long trade on TFG, at least back to the most recent highs achieved in September.
SELL: CAPITEC
Capitec looks to be setting up for another leg down. That said, volatility reigns supreme and markets remain highly unpredictable. The setup here is most definitely a bearish one though. It looks like a classic ABC pattern, as well as a break of a significant horizontal support level. We believe the turmoil in the overall market is not yet done. Therefore, any escalation of the larger macro risks will likely lead to a sell-off both locally and globally. In that context, Capitec looks rather fragile.