Trading Ideas

Two months in and Investec Ltd still top of the pops for 2019

Two months in and $JSEINL still top of the pops for 2019 by SchalkLouw on

And that brings Feb19 to an end. Two down, ten to go! JSE:J200 ($JTopi) having a great start to the year – up 6.92% YTD. Top performer is still Investec Ltd, at 15.9% YTD. Question remain – time to take some profit or does it still have some legs?

Analysts still forecasts Investec to be in the region of R112 over the next 12 months and with the planned unbundling of the Asset Management division into a separate listed company, I personally still believe there will be some value unlocking.

Looking at the long-term monthly graph, I believe that the trend is still very much it’s friend currently. Next target looks like the 50-month moving average at R98. Should we see a breakout from the top of thewedge , R102.70 could very much be next stop, with R114.50 then becoming my next target.

Should the trend (not remain our friend and) turn, watch out for R83.22, with R78 then becoming a very critical resistance level .

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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