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The one sector I am looking to buy into for the first time in 10 years!

by , 26 July 2022
The one sector I am looking to buy into for the first time in 10 years!
Last week, an ex-director of Netcare (who retired over 12 years ago) reached out to me.

He has been following my probability predictions with Trading Tips since 2013 and has been an avid reader.

He was curious to hear my take on two different health companies and whether I am bullish (expect upside) or bearish (expect downside).

After I completed the analyses, what I discovered enticed me to add this to my watch list!

Today I thought I'd share what I discovered…

These two healthcare companies have just been added to my watchlist!

Let’s start with the biggest healthcare company…

#1. 10 Years on and Netcare is finally giving me a healthy buy signal!
 
You’re looking at the weekly chart of Netcare.

 

It is clear Netcare has had a very strong support (floor level) at around R12.14. The first time this price bounced off was in 2011.

The price then went back down and bounced off this level again in March 2022.
And now that the price tested and bounced off the level again, this showed me that buying (demand) was taking place, pushing the price up.

However, I still needed one more indicator to show momentum was picking up. So, I added one more indicator to the chart.

How the RSI has given me a solid reason to buy Netcare

 
 

The second indicator, I’m looking at is below the price chart with the RSI – Relative Strength Index (squiggly black line).

The RSI is a leading indicator that can help make a probability prediction whether the market is about to turn up or down.

There are three different ways to interpret the RSI, but for this article I want to look at the Bullish Divergence.

 
 

All you need to know is this.

When the RSI shows higher lows on the indicator (rising blue line), then it tells us we can expect upward momentum in the share price shortly after.

This is known as a Bullish Divergence.

As you can see, the RSI has clearly shown higher lows, while the price has been moving in a sideways formation. This tells me, we can expect the price of
Netcare to head up in the next couple of weeks.

In summary, I’ll be buying Netcare because:
1.    Netcare has bounced off a 10 year support
2.    The RSI is showing a Bullish Divergence.

I expect I’ll very soon be sending a buy signal out to my group of Red Hot Storm Traders. If you’d like to find out how to join you can go here.

Now let’s take a look at health company #2…

#2: This pattern has sparked a buy signal for the first time in six years

The next healthcare company I’m looking at is Mediclinic. We’ll also look at the weekly chart below.

 
 
Mediclinic has been moving in a continued downtrend (bear market) from 2016 up until 2018 (1st Vertical line).

Then, the price moved in a sideways range (consolidation) from 2018 to 23 August 2021 (2nd vertical line).

Since then, the price has turned up and has been showing bullish (buying signs).

To top this off, the price has closed above yet another indicator (200MA).

The 200MA is the most significant and most watched line that tells traders whether to buy or sell.

When the price is above the 200MA, the market is in buying territory. And
when the price is below the 200MA, the market is in selling territory.

As of last month, the price has crossed above the 200MA which is giving me a screaming buy signal.

I’ll be sure to let my group of Red Hot Storm Traders know when they should buy. 
If you’re not yet a Red Hot Storm Trader, then go here, so you don’t miss out.

PS: We have banked 4 winners in the last month with Red Hot Trader:

•    A 77% top gains on Aspen
•    A decent 24.72% on Anglo American
•    A solid 22.13% on Sasol
•    And another 26.37% on BHG

And we’re just getting started.


Make sure you don’t miss the next profit coming from the Healthcare sector, join here now, because you could receive your first buy SMS as early as tomorrow!



The one sector I am looking to buy into for the first time in 10 years!
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