Trading Commentary | Tuesday, 01 August 2023
The most overbought names are local, SA-Inc i.e. banks, retailers
A strong ZAR / weaker USD has support the above
This has seen dual-listed and rand-hedge shares lag the market
Monday's price action saw notable strength in resource shares, with strong candle structure. Here, from a technical perspective, there is some work to be done, however the positive price action is worth noting
Using Monday's summary of the technical screen (see image below) as a reference point, it is noted that an overwhelming and above-average number of constituents traded in the overbought and high bullish momentum / approaching overbought category, with a clear tilt toward South African facing shares. The demand for the local counters have come as a result global investors underweight position in the region and potentially, in part, the short covering from those who were previous positioned for a further local economic fallout.
To view today's technical summary, click on the following link:
Analyst: Unum Capital