Aspen Pharmacare: Unhealthy Price Action, But Flashing For Opportunity

Wednesday 23 October 2024

Time Published: Pre-Market

Ticker: APN

• I am fully aware of the heavy selling pressure and poor price action, however, I am starting to notice readings coming through which states that the reward-to-risk is becoming attractive for a small buy/long position.

• While the readings are there, it may just be sensible to wait until the price stops going down and starts to form a base...or gives us a 'flush low' and a V-shaped reversal setup.

• Notice the 5 to 8 week reading also stating that selling is aggressive and that we should wait for the price to stabilize?

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• I drew these lines a few weeks ago, thinking R160 or thereabout would be a level of interest.

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Previous Post: Aspen Pharmacare: The Long and Short of It - Thursday, 05 September 2024

Pre-Market

Ticker: APN

• Within the span of 19 months, the share has provided clients of Unum Capital with two opportunities to profit.

• These opportunities came on both the long (buy) and short (sell) side, benefiting from a rising and falling share price.

• The short leg provided short term traders with 3x opportunities to sell above 23500c.

• Although the share briefly test the stop-loss level (a spike), the share pullback was in line with the view.

• The updated chart, with the time-stamped ideas, is shown below.

Lester Davids

Analyst: Unum Capital