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  • Writer's pictureLester Davids

Trading Commentary | Tuesday, 01 August 2023

Key Points

  • 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:

Lester Davids

Analyst: Unum Capital

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