Reinet possibly on the way down

Reinet Investments S.C.A. has spent most of this year trending higher. Towards the end of March, however, the stock lost its momentum.

If you look at the above chart, you'll also see a bearish divergence has formed on the MACD. Although the high created earlier this month is lower than the one created in March, there is a much bigger difference in the high created on the MACD.

You can also see weakness in price on the Slow Stochastic Oscillator.

Finally, there is a clear break of the first quarter trendline. This current consolidation channel looks weak and I'm going short.

Action: Place a Limit Order to go SHORT with your Limit Price set to R233.00. Set your Stop Loss to R246.00 and your Take Profits to R215.00 and/or R200.00.