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Short Term Traders, Take Profit: Mining Share Rebounding +5.2%

  • Writer: Lester Davids
    Lester Davids
  • Jul 13
  • 3 min read

+30 Take Profit Opportunities: Our Capabilities > https://www.unum.capital/post/capabilities

Free Content: July 2026 > https://www.unum.capital/post/rjuly2026

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za

NOTE: When Published Intraday (JSE Equities), Prices Are Delayed By 15 Minutes


Our previous note (27 June, see further below) stated the following:


"If you are a short term trader, watch the overshoot of the rising 21-week EMA (~R620 to ~R644) as a tactical level to accumulate for an ultra short term rebound."


The share traded into this level and has since rebounded by over 5%.

Short term traders, take profit.



BHP Group: Actionable Areas

Published Saturday 27 June for Monday 29 June.


"Based on the Daily Chart for BHP Group Ltd (BHG) the reward-to-risk profile has deteriorated significantly following a sharp rejection at multi-month highs. The upside reward potential is currently low 🟥 because any reflexive bounce faces intense overhead supply from trapped buyers within the previous distribution top, turning prior support shelves into formidable ceilings. Conversely, the downside risk is elevated 🟥. The persistent cascading price action suggests that the path of least resistance has shifted firmly downward, leaving the asset vulnerable to deeper liquidation before discovering a durable short-term floor."


If you are a short term trader, watch the overshoot of the rising 21-week EMA (~R620 to ~R644) as a tactical level to accumulate for an ultra short term rebound. Should the price continue to deteriorate around this level (i.e. if institutional investors do not step in as buyers, then a buy re-entry idea will be considered temporary invalid).


READY TO TRADE: ACTIONABLE AREAS


For active traders who look to generate cash flow on a continuous basis, determining the ‘next best probability’ level to execute against may be of immense value, specifically by helping to determine the best potential times and levels to commit capital.


The blue and red horizontal lines on the chart represent a next-best-probability buy re-entry range and a next-best-probability sell re-entry range over the short term. The ranges assume no existing position is being held by a trader, while the probabilities are based on several factors, which may include:

  • Short-term ratings and medium-term regimes

  • Momentum indicators

  • Horizontal or diagonal support and resistance

  • Candle structure

  • Moving averages and standard deviation


Please note that these are short-term levels and may contrast with medium- and long-term outlooks, which are based on the weekly and monthly charts and are generally more applicable to long-term investors. These levels are subject to change based on market sentiment, subsequent price action, and company/sector-specific or macroeconomic news flow. As always, while the levels are outlined to guide your capital deployment, traders should be prepared to adjust in real-time based on the aforementioned factors.


THE TACTICAL TRADING GUIDE (PRICE ACTION MODEL): UNCOVER OPPORTUNITIES & ASSESS REWARD-TO-RISK

  • It helps helps clients determine and shed light on the some of the following:

  • The CURRENT TECHNICAL POSITION and a PRICE ACTION PROBABILITY for multiple time frames.

  • Three (3) ‘trading’ time frames are considered: Short Term (1 to 10 days) / Medium Term (2 to 4 weeks) and Long Term (5 to 8 weeks)

  • Whether the reward-to-risk is attractive for a buy/long position

  • Whether a share is weak. In this case, wait until the price stabilizes before looking to enter (i.e. want until it stops going down)

  • Whether aggressive buying is underway. In this case, do not ‘chase’ (do not buy) but instead wait for a pullback to re-enter a buy or an overextension with deteriorating candle structure to sell/short.

  • Whether a trader can look to buy a pullback into a key moving average (continuation trade)

  • Whether a share needs to break a range for a new trend to be determined (bullish or bearish)

  • Whether a traders needs to monitor for a change of character that could lead to a bullish or bearish reversal

  • Whether a share could start a consolidation phase or before continuing it’s bullish or bearish trend

  • Whether the upward momentum is slowing (if it's in a bullish phase)

  • Whether buyers can look to 'phase in' to a position (if it's in a bearish phase)

  • Whether a share lacks directional bias.

  • The data set is available in real-time (on request)

  • The readings are subject to change as the price action develops.


Lester Davids

Senior Investment Analyst: Unum Capital

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