Research: Insights & Opportunities - Monday, 25 March 2024

Updated: Mar 24

To trade, or open a new account, contact the Unum Capital Trading Desk:

E-mail: tradingdesk@unum.co.za | Call: 011 384 2923

Lester Davids

Analyst: Unum Capital

Good day. Thank you for taking the time to visit this page.

My overall goal is to provide clients of Unum Capital with leading, high quality information by conveying my best interpretation of the most relevant market information in order for you, as a client to: (1) understand and profit from the potential opportunities and manage the potential risks and (2) make informed decisions around trading opportunities. To read my full research philosophy, please visit the following link: https://www.unum.capital/post/research-philosophy.

To continue reading today's research, please scroll down.

Resource Centre: Price Cycle - The Yellow Line is an example which illustrates how a share price can develop over time, moving between the various short term technical ratings.

Monday 25 March 2024, 06h30 | Technical Summary: Mid & Large Caps, as of Friday's close.

Monday 25 March 2024, 06h30 | JSE Sector Ratings Change

Monday 25 March 2024, 06h30 | JSE Relative Sector Ratings, as of Friday’s close (Sector Rating Relative To The Top 40 Index)

Monday 25 March 2024, 06h30 | JSE Relative Sector Status and Change, as of yesterday’s close (Sector Rating Change Relative To The Top 40 Index)

Monday 25 March 2024, 06h30 | ABG Absa Group | The candle structure reflects strong selling pressure and the trend is down. While we do not attempt to catch/call the exact bottom, we can prepare ourselves for when the candle structure improves which could signal a potential short term bullish reversal. Here’s what to note: (1) High Bearish Momentum/Approaching Oversold (2) Buy alerts on two time frames (short term & medium term) - see the Tactical Trading Guide below:

ABG Absa Group WEEKLY CHART - Zooming out, you'll also note the share trading around a horizontal support zone as well as around the 200-week SMA.

Monday 25 March 2024, 06h30 | MRP Mr Price - There are early signs of weakening candle structure. This is developing at/near a multi-month supply range. In addition, the 14-day RSI is printing a negative divergence which is often a precursor to a price decline. The reward-to-risk favours a potential downside reversal.

Friday 22 March 2024, 06h30 | Tactical Trading Guide (Share Commentary on Largest 90 Shares By Market Cap): Technology + Proprietary Insights has helped to develop automated tools and strategies that are used to identify potential trading opportunities as well as highlight potentially significant technical developments across various time frames. This page highlights readings from our Tactical Trading Guide (Price Action Tool) which is also available as a live tool via the telegram group. The tool provides automated price analysis of over 90 JSE-listed equities across 17 sectors and across 3 time frames: short (short term), medium (medium term) and long (long term). Readings are subject to change, based on the development of the subsequent price action.

To Access All 90 Shares, Including Sibanye Stillwater, Anglo American, Bidvest and Shoprite, Click On The Following Link: https://www.unum.capital/post/tactical-trading-guide

Monday 25 March 2024, 06h30 | Candlestick Formations form part of technical price charts, which are are used by market participants to interpret current demand-supply dynamics, potential price trends as well as form decisions from these inferences. The tables below highlight the following: (1) The share code (2) the candle's 'change from open’ (over 1 session) i.e. from the start of the first hour of the trading day to the end of the last hour of the trading day'. This is used to determine the strength/weakness of the candle formation i.e. the greater (+) the percentage, the stronger the candle formation and the weaker (-) the percentage, the weaker the candle formation and (3) the share's short term technical rating i.e. which phase the share is in over a 7 day period.

TOP 15 (STRONGEST)

BOTTOM 15 (WEAKEST)

Monday 25 March 2024, 06h30 | One of the main themes on the JSE in recent weeks has been the rotation OUT OF FINANCIALS and INTO RESOURCES. Five weeks ago (Monday 19 February), clients of Unum Capital were alerted to this potential development via a relative chart which showed the ratio trading at a key level. Since then, Resource shares have OUTPERFORMED Financial shares by 15.3%. Well done to clients who have been participating in the rotation. The original chart + updated comment is shown below:

Monday 25 March 2024, 06h30 | Update: Satrix Resources: The chart below was presented to clients on Wednesday 14 March. Resources have since gained 11.4%.

Monday 25 March 2024, 06h30 | Update: AGL Anglo American Plc. Potential price path now being followed, approaching target.

Monday 25 March 2024, 06h30 | IMP Impala Platinum (NOW TRADING HIGHER BY +38%). Trading close to R80, from R60 at the time of the buy/long signal which was delivered via the Tactical Trading Guide. The time-stamped reading is shown on the chart below: