📊 JSE Sectors: Contrarian Factors & Risk Signals

Research Notes February 2026 > https://www.unum.capital/post/rfeb2026

Trade Local & Global Financial Markets with Unum Capital.

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⚠️ CONTRARIAN FACTORS AND RISK SIGNALS

For traders looking to fade the crowd or hunt for reversals (Mean Reversion Hunter):

1. Deep Value Watchlist (Potential Buy?):

   • Paper & Pulp 🌲 remains long-term "Oversold" 💎. The bleeding has stopped in the short term (Neutral), which is often the first sign of a bottom.

   • Technology 💻 and Consumer Discretionary 🛍️ are approaching "Deep Capitulation." When sentiment is this uniformly negative, and indicators are this oversold, a violent "snap-back" rally is often imminent due to short covering and selling exhaustion. Aggressive traders may look for reversal candles here.

2. Overextended Watchlist (Potential Sell?):

   • Gold Miners 🥇 remain on the radar for a pullback. While the narrative is supportive, the quarterly indicators are approaching "Overbought" levels. If the gold price stalls, these stocks are vulnerable to a sharp correction to reset the technicals.

Lester Davids

Senior Investment Analyst: Unum Capital