Trading Naspers: Retreating From Upper Boundary of Channel + How To Trade

Research Notes For 02 to 06 June > https://www.unum.capital/post/r0206june

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Here's a breakdown of the current price action for NASPERS:

• The 7-day trend is indicated as "Neutral," while the 14-day trend is "Rangebound."

• Comparison: The short-term (7-day) trend is neutral, suggesting a lack of clear directional momentum in the very recent past. The slightly longer short-term (14-day) trend is rangebound, indicating that the price has been fluctuating within a specific high and low without a sustained upward or downward movement. This suggests that while there isn't a strong directional bias in either timeframe, the 14-day view shows a period of consolidation rather than a clear trend.

  
  

• Potential Trading Approach for NASPERS:

  • [Short Term] Expected Time Period To Unfold: Approximately Within The Next 1 to 10 Trading Days: The model notes, "Upward Trend But Has Turned Weaker, However Use Rebounds Into The 8, 21 or 50-EMA As A Potential Sell Short Range."

    • Approach: While there might have been an upward trend, it's now showing weakness. Consider using bounces up to the 8, 21, or 50-period Exponential Moving Averages (EMAs) as potential opportunities to sell short within the current range.

  • [Medium Term] Expected Time Period To Unfold: Approximately Within The Next 2 to 4 Weeks | Apply Daily/Weekly Moving Averages Where Applicable: The model indicates, "Bullish Momentum Is Slowing On Lower Time Frames-Look For Minor Support On 8, 21 or 50-Day EMA As A Buy Range For A Rebound."

    • Approach: Bullish momentum is weakening in the shorter timeframes. Look for potential buying opportunities (buy range) around the 8, 21, or 50-day EMAs for a possible rebound.

  • [Long Term] Expected Time Period To Unfold: Approximately Within The Next 5 to 8 Weeks | Apply Weekly Moving Averages & Time Frames (i.e. In Some Cases, Daily): The model states, "Buyers In Control But Weakness On Lower Time Frame-Look For Pullback To 8 or 21-EMA (Buy Range) Before Next Move Higher."

    • Approach: Buyers are generally in control, but there's short-term weakness. Look for potential pullbacks to the 8 or 21-period EMAs as buying opportunities before the price potentially moves higher.

      
      

• Overall Trading Considerations for NASPERS:

  • Conflicting signals: The short-term is neutral to bearish (looking for shorts on rebounds), while the medium and long terms suggest bullish control but with opportunities to buy on weakness (pullbacks).

  • Short-term strategy: Focus on selling short on bounces within the range.

  • Medium-term strategy: Look for buying opportunities on dips to support levels (EMAs) for a potential rebound.

  • Long-term strategy: Maintain a bullish bias, anticipating buying opportunities on pullbacks before a further upward move.

In summary, for NASPERS, the current view suggests a short-term rangebound market with opportunities to sell short on strength, while the medium and long terms lean bullish, favoring buying on weakness.

Lester Davids

Senior Investment Analyst: Unum Capital