Trading Discovery: Megaphone Formation + Approaching Overbought Conditions

Lester Davids
May 27
1 min read

Research Notes For 26 to 30 May > https://www.unum.capital/post/r2630may

Trade Local & Global Financial Markets with Unum Capital.

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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