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FirstRand Running 29%: Where To From Here?

  • Writer: Lester Davids
    Lester Davids
  • May 30
  • 2 min read

Research Notes For 02 to 06 June > https://www.unum.capital/post/r0206june

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The share has rebounded sharply, with today's high being 29% above the buy range of 5800c to 6000c. The price action model reading as at the time of analysis is as follows:


ree

ree

Here's a breakdown of the current price action:

  • The 7-day trend is indicated as "Strong," while the 14-day trend is "Bullish."

Comparison: Both the short-term (7-day) and slightly longer short-term (14-day) trends indicate upward momentum ("Strong" and "Bullish" respectively). This suggests a consistent buying pressure across these timeframes. The "Bullish" 14-day trend reinforces the "Strong" 7-day trend, indicating that the recent strength is part of a broader upward movement.


Potential Trading Approach for FIRSTRAND:

  • Short Term (Approximately Next 1 to 10 Trading Days): The model notes, "Attempting To Advance Whilst In A Bullish Regime-If It Pulls Back Use The Prior Session Close Or 8-EMA As An Accumulation Zone."

    • Approach: The short term suggests an ongoing bullish regime. If the price pulls back, the prior session's close or the 8-period EMA could act as potential accumulation zones for buying opportunities.

  • Medium Term (Approximately Next 2 to 4 Weeks): The model indicates "Attempting A Bullish Reversal Following A Consolidation Phase."

    • Approach: The medium term suggests that the recent bullish activity is likely an attempt at a reversal after a period of consolidation, supporting a bullish outlook over the next few weeks.

  • Long Term (Approximately Next 5 to 8 Weeks): The model states, "Attempting To Rebound Within A Range General Trend Up-Buy/Long On Strong Bids Near The High Of Range."

    • Approach: The long-term perspective suggests the price is attempting to rebound within an overall upward trending range. Buying or going long on strong bids near the high of this range is favored.


Overall Trading Considerations for FIRSTRAND:

  • Consistent bullish momentum: Both short and slightly longer short-term trends are bullish, supporting upward price action.

  • Short-term accumulation on pullbacks: Short-term traders might look for buying opportunities during pullbacks to the prior session close or the 8-EMA.

  • Medium-term bullish reversal: The medium term reinforces the bullish sentiment following a consolidation.

  • Long-term buying near range highs: The long term suggests buying opportunities near the high of the established upward trending range.


In summary, for FIRSTRAND, the current view is bullish across short to long terms, suggesting potential buying opportunities on short-term pullbacks and near the highs of a longer-term upward range.



Previous Post: Actionable Areas: FirsrRand

(Published Saturday 05 April for Monday 07 April)


FirstRand (FSR) is down 29% from it's Sept-2024 peak, with the share trading near it's June lows. It's not inconceivable that the share could trade down at the 5800c to 6000c range, which is a medium term support range. At current levels, oversold conditions are already present which reflects aggressive selling pressure however, also raises the probability of an ultra short term rebound. Last close: 6293c


FSR Daily Chart as of the close on Friday 04 April
FSR Daily Chart as of the close on Friday 04 April

Lester Davids

Senior Investment Analyst: Unum Capital

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