FirstRand is the biggest bank in South Africa according to their market capitalization of R413m. They have more than 44 000 employees. Their biggest shareholder is Rand Merchant Bank (34%), the PIC (9.2%) and their employees own 5% of the company through an empowerment share scheme. In November last year they announced the R20bn takeover of Aldermore group in the UK. Their interim results for the six months ending December 2017 reported a 9% rise in dividend per share and a 7% rise in normalized earnings.

  • The momentum to the bottom is clearly in place but the bull engulfing candle (positive), falling wedge (possibly positive), formed between line A and line B, can easily give a relief bounce if line A changes into a support.
  • The share is also heavily oversold (see stochastic indicator).
  • The optimism will disappear below line B (R49-41) but above line A (R61-31) the share can give a relief bounce to R64-61, where the formation will play out.
  • For traders – Buy above line A but use R49-41 as stop loss to protect capital. The possible targets towards the top are R61-52, R61-77, R62-43, R62-85, R63-47, R63-72 and R64-61.
  • For medium to long term investors – The support/resistance of the 200 day moving average (R61-12) is being tested. If you like the share do the same as the traders above.

Don't hesitate to ask if anything is unclear.

Frans & Christelle