What's Next For Naspers?

Lester Davids
6 hours ago
2 min read

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

Trade Local & Global Financial Markets with Unum Capital.

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

In our previous post, we highlighted the share having started to retrace in line with the price action mode reading. According to the update model reading (as of Friday's close), at or below the 50-day EMA is a range where short term traders should be looking for support. Looking more broadly, the 21-week EMA (coinciding with the 75-day EMA) is a range at which medium term traders would wait for a re-entry (see the blue horizontal lines on the chart).

Previous Post (19 May): Trading Naspers: Retracing In Line With Model Reading

Please see the original model reading further down (14 May).

Previous Post (14 May): Short Term Traders, Caution On Naspers

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On 14 January, we published a note, highlighting Naspers oversold condition relative to the JSE Top 40 Index.

After a 40% rally, the reward-to-risk is LESS favourable versus the Q1 lows.

Yesterday's pre-market price action model reading (Tactical Trading Guide) for Naspers stated the following for the 3x time frames:

SHORT TERM (approximately 1 to 10 days): "Do not enter a buy/long here (at current levels). The reward-to-risk is unattractive"

MEDIUM TERM (approximately 2 to 4 weeks): "The general trend is up, however, look for failure to hold the prior session range highs to initiate a ~1 to 2 day short/sell setup.

LONG TERM (approximately 5 to 8 weeks): "Has resumed a bull move in a strong upward trend."

Yesterday's Tactical Trading Guide can be found here: https://www.unum.capital/post/pacmntry