Trading Clicks: Bearish Reversal Off Sell Range

Lester Davids
10 hours ago
2 min read

Research Notes For 12 to 16 May > https://www.unum.capital/post/research-12-16-may-2025

Trade Clicks Group with Unum Capital.

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

Update: Bearish reversal off sell range. Now trading 37807c vs 40500c

Previous Post: Our recent buy long idea on Clicks worked out well for clients who latched onto the opportunity. Driven by a manual as well as an automated view (price action model), the share traded into the buy re-entry range (mid-point R315) which was followed by a sharp rebound to above R404 (+28%).

Scroll (further) down to view the original post.

On Monday we set our sell re-entry range at 40513c to 41401c. Yesterday, the share continued it's rally, reaching a high of 40481c before retracing to test a low of 38593c. It's a pity that the share didn't trade fully into the sell re-entry range as the high was just shy of that. That's markets for you!!!

Previous Post (Monday, 21 April): Click(s) Here To Take Profit

If you bought Clicks in the actionable area, then you are in the money by 6000c. The share traded into the next best-probability buy range which was followed by a sharp rally.

Recently, clients of Unum Capital were alerted to a trading opportunity in Clicks. The link to the original post is as follows: https://www.unum.capital/post/click-quality

Our thesis at the time was driven by the appealing (pending) reward-to-risk, supported the price action model model which stated the following:

Short Term (approx. 1 to 10 days):

"The reward-to-risk is becoming attractive for a small buy/long position"

Medium Term (approx. 2 to 4 weeks):

"Aggressive selling underway. Wait for the lower time frames to stabilize".

Long Term (approx. 5 to 8 weeks):

"The share has been weak, with selling pressure however, there is a probability of a small rebound"

Where to from here?

The share closed the last session in 'HIGH BULLISH MOMENTUM / APPROACHING OVERBOUGHT' regime. This means that it has experienced a strong rally over the short term.

Where is the next (best probability) level to buy, and why? Should the price immediately retrace from current levels, the rising 8-day exponential moving average (EMA) as well as the 75-day exponential moving average (EMA) is the next best-probability re-accumulation range. The year-to-date VWAP is in a similar range. BLUE/TURQUOISE DASHED LINES -------

Where is the next (best probability) level to sell, and why? Should the price continue to immediately advance from current levels, the share is likely to face resistance (1) at or just above the prior swing highs (best probability R405 to R412) , (2) in addition, the share will likely be extended to the upside versus both it's 8-day and 21-day exponential moving averages (EMA). It is also likely to be trading in a short term overbought range. RED DASHED LINES -------