Sector In Focus: JSE Banks

Research Notes For 19 to 24 May > https://www.unum.capital/post/r1924may

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PLEASE NOTE: The data/charts were completed during Friday's trading session and reflects price as of the time of analysis.

ABSA (ABG): In the short term (1 to 10 days), the strategy suggests an attempt at a bullish reversal following a consolidation phase. For the medium term (approximately the next 2 to 4 weeks), the strategy indicates an attempted rebound after a downward trend, with potential for further consolidation before a move higher. Looking at the long term (approximately the next 5 to 8 weeks), the strategy suggests a lack of clear directional bias.

FIRSTRAND (FSR): Short-term strategy suggests looking for potential buying opportunities as it attempts to advance within a bullish regime, particularly on pullbacks towards the prior session close or the 8-EMA as accumulation zones. The medium-term view indicates an attempt at a bullish reversal after a consolidation phase. For the long term, the strategy is to look for rebound opportunities within a range, generally favoring buying/long positions on strong bids near the high of the range.

NEDBANK (NED): In the short term (1 to 10 days), the share is in or commencing an upward trend, but a strategy should strongly consider a potential tactical short-sell opportunity if prior session range highs fail to hold. For the medium term (2 to 4 weeks) and the long term (5 to 8 weeks), no readings are currently available.

STANDARD BANK (SBK): Aggressive buying is underway in the short, medium and long term. However, the overall strategy should be approached with caution. While the short, medium, and long-term trends are upward, a tactical short-sell opportunity exists if the price fails to maintain prior session range highs. Therefore, closely monitor price action and be prepared to capitalize on potential short-selling opportunities while acknowledging the underlying upward momentum.

Lester Davids

Senior Investment Analyst: Unum Capital