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10-Point Momentum Report

  • Writer: Lester Davids
    Lester Davids
  • 15 hours ago
  • 2 min read

Research Notes May 2026 > https://www.unum.capital/post/rmay2026

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za


  1. Parabolic Redline: BTI and BOX have entered the maximum extension zone. Their 1M velocity (+14% to +22%) is statistically unsustainable relative to their Base Term means; risk of "Gravity" is extreme.

  2. The Staircase Lead: ANH and ADH represent the highest quality momentum. They are printing consistent higher highs with low volatility, indicating methodical institutional "Strong Hand" accumulation.

  3. Waterfall Capitulation: CLS and TFG are exhibiting "Waterfall" momentum—vertical downward moves with zero intraday absorption. These are pure liquidation events.

  4. Short-Squeeze Triggers: BAT and BYI have flashed violent 1M reversals. This momentum is driven by short-covering rather than long-term value, making them high-conviction 🟥 Sell/Reduce candidates on further strength.

  5. The Mean Reversion Gap: The spread between ANG (-12% 1M) and GLN (+5% 1M) within the minerals complex is widening. Momentum favors a pair trade: shorting the overextended cyclical for the recovery of the precious metal producer.

  6. Velocity Atrophy: APN and DSY are seeing momentum atrophy. While their Base Terms remain positive, their Mid Term RSI has cooled significantly, shifting them from "Leader" to "Neutral" status.

  7. High-Beta Volatility: ISO remains the momentum outlier. Its +29% 1M move against a broken long-term chart is a "Speculative Mania" signal that requires zero-leeway exit discipline.

  8. The "Neutral" Trap: Momentum is dead in the Major Banks. ABG and SBK are caught in a low-velocity chop that is eroding the carry-trade appeal for many international funds.

  9. Structural Resumption: AFE and DTC are showing "V-Shape" recovery momentum. After a brief 3M consolidation, they have successfully reclaimed their 1M positive slopes.

  10. The Exhaustion Pivot: MTN and NPN are flashing momentum exhaustion. Despite being historical market darlings, their failure to clear Short Term resistance suggests a multi-month cooling period is beginning.


Lester Davids

Senior Investment Analyst: Unum Capital

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