Trading Discovery: Following Our Price Path (Higher), But In Overbought Territory (See Updated Model)
- Lester Davids
- 2 days ago
- 1 min read
Research Notes For 02 to 06 June > https://www.unum.capital/post/r0206june
Trade Local & Global Financial Markets with Unum Capital.
To get started, email tradingdesk@unum.co.za
Current Price Action Model Reading: (scrolls down for previous views/comments)


Previous Post (26 May): Trading Discovery: Megaphone Formation + Approaching Overbought Conditions)
Discovery Holdings (DSY) has previously given clients opportunities on both the buy (long) and sell (short) side.
There's a chance that the share could lose short term momentum and fail to hold it's highs however, traders should also be open to the possibility of a test of the upper boundary of what appears to be a MEGAPHONE technical formation. This range is approximately between R223 and R230 - a level at which it could become extremely overbought in the short term. If it trades at that range, we should be considering a short/sell trade meaning, potentially taking a position which takes advantage of a bearish reversal from overbought conditions.
Let's stay flexible & let's get ready to trade.
Note: Levels subject to change as the news flow and price action develops.
Last Close: 21347c


Previous Post: Trading Discovery (+20%): 'We Had An Opportunity To Build A Position'
DSY now higher by 20%.


Lester Davids
Senior Investment Analyst: Unum Capital
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