JSE Technology: Momentum Profile + Reward-To-Risk

Research Notes February 2026 > https://www.unum.capital/post/rfeb2026

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Technology (NPN, PRX)

The Technology sector remains trapped in a persistent downtrend, characterized by lower highs and lower lows that have dragged the index down to the 87,297 level. The sector is clearly acting as a source of funds for other rotating trades, with sellers dominating every attempted rally. The RSI is deeply depressed at 5.73, confirming that sentiment is washed out. Like Fashion Retailers, this sector is technically oversold, but the absence of any constructive price structure makes it a high-risk value trap until a base begins to form.

• Verdict: Value Trap? 🪤

• Long R:R: 🟡 2:1 (Speculative). Similar to retail, a bounce is due, but the chart structure is broken.

• Short R:R: 🔴 1:2 (Poor). Risk of a squeeze is too high at these levels.

Lester Davids

Senior Investment Analyst: Unum Capital