Trading Naspers: Retracing In Line With Model Reading

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

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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

The slide below is from last week's report, discussed Naspers:

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Previous Post (14 January): Relative The Top 40, Naspers Is Trading In A Short Term Oversold Range

The lower panel on the chart tells a story...

NPN Relative To The JSE Top 40 Index Daily Chart as of Monday 15h08

Lester Davids

Senior Investment Analyst: Unum Capital