Tuesday 26 November 2024 (Time Published: 06h09)
The current price trend (down) reflects the automatic price action reading which clearly states the share is weak (ST & MT) while the 8-week and 21-week EMA may act as resistance ranges on any short term rally. The fundamental impact on price is known, with the impact of the Chinese slowdown having filtered through to almost all global luxury peers, resulting in muted growth prospects which has caused market participants to sell down the shares. The share was previous a short/sell idea on 07 June when it traded into extreme short term overbought territory at a high of R3194 before retreating by 27% to it's recent low of R2309. While it the trend is fundamental outlook is bearish and the price is trending down, it may be worthwhile to keep an open mind for a potential change of trend following this multi-month consolidation. What do we need to see? Strong price action with volume would be an early indicator that the market's sentiment toward the share is starting to change + clear/reclaiming the downward trend line in place since the recent peak of 07 June 2024. View as of Thursday 21 November at 10h52.
Previous Post: Richemont Is Retreating In Line With Model Reading - Wednesday, 18 September 2024
Real-Time: 10h45
Ticker: CFR
Currently lower by R415 or 15.4%
Potential target is the unfilled gap at ~R2380
Previous Post (22 August 2024)
• REAL-TIME: 15h30
ABOUT THE TACTICAL TRADING GUIDE:
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 for any tradeable instrument 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.
The tool helps to determine and shed light on the some of the following:
Whether the reward-to-risk is attractive for a buy/long position?
Whether a share is weak or if aggressive buying is underway
Whether a trader can look to buy a pullback into a key moving average (continuation trade)
Whether a share needs to break a range for a new trend to be determined (bullish or bearish)
Whether a traders needs to monitor for a change of character that could lead to a bullish or bearish reversal
Whether a share could start a consolidation phase
Whether the upward momentum is slowing (if it's in a bullish phase)
Whether buyers can look to 'phase in' to a position (if it's in a bearish phase)
Whether a share lacks directional bias
Lester Davids
Analyst: Unum Capital
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