Search this site

Wednesday, 25 September 2024, 08h49 Ticker: SBP Looking through some of the small cap shares, this one, an investment holding company with a world-class capital allocator as CEO, is looking to emerge from a multi-month consolidation. Worth putting on your radar. Not the most liquid name, hence much smaller positions will be applicable. Lester Davids Analyst: Unum Capital

Wednesday, 25 September 2024, Pre-Market Share Name: Absa Group Ticker: ABG The sell-off at the end of Q1 gave clients an opportunity to buy. It was Monday 25 March when the pre-market note was published which included my view as well as the automated price action reading via the Tactical Trading Guide. From R140, the share price rallied to R183. The original insert, with time-stamped chart is shown below: At current levels, the fundamental valuation remains appealing, with the share commanding a 7.7x price-to-earnings ratio and a 7.8% dividend yield. Technically, the share has developed a symmetrical triangle formation, which reflects a consolidation before a potential breakout. Over the medium term, the upside targets are R205 and R212 and is invalidated below R155. Last close: R175.61 Lester Davids Analyst: Unum Capital

Tuesday, 24 September 2024 at 18h25 Stock Name: Johnson & Johnson Ticker: JNJ Your trigger is strong price action around $167 or an eventual breach of the downward trend line. The setup is invalidated on a weekly close below $148. Lester Davids Analyst: Unum Capital

Wednesday, 25 September 2024, 09h15 Update: The share is well in the money and approaching the target. As always, traders could consider the following if/when the prices approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. The chart is current. Previous Post: 03 September Real-Time: 11h21 Ticker: EXX 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

Wednesday, 25 September 2024, 09h11 Update: The stop-loss was tested. Pre-Market Sell/Short Idea The price has started to reflect selling/distribution, and on this basis, I am publishing a SELL/SHORT trade alert. In addition, to the factors previously expressed (see further below in this page), other drivers for my view are as follows: The governor of the South African Reserve Bank has poured cold water on an interest rate cut in September. According to DFA.co.za, Governor Lesetja Kganyago says the country has to sustain a low inflation rate for a period of time in order for the central bank to justify further interest rate cuts. Technically, relative to the JSE Top 40 Index, the share is trading at an extended level vs the 200-day SMA. I am expecting the share to attempt a rally, however, these spike could be used as an opportunity to initiate a position. Preferred selling range: 23400c to 23700c Stop-loss: 25100c Target: 21100c Time Frame: Medium Term As always, traders could consider the following if/when the prices approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. Time Stop: Friday, 17 January 2025. (Previous Post: 03 September) Real-Time: 14h43 Ticker: MRP MRP chart #1 (from Sunday report) - big level there at ~R237-ish. MRP chart #2 (as of today's close) - it's been trading into R237 the past two days, with a long term rising wedge. In addition, a very interesting candle (bearish engulfing). MRP chart #3 - price (last close R232) extended vs 200-day SMA (at R176). Trading 31% above it's 200-day SMA. By historical measures, that appears extended to the upside. Previous Post (Caution, New Longs) Ticker: MRP Pre-Market Yesterday evening's reading via the Tactical Trading Guide has caught my attention: As noted at the start of this week. Previous Post (Friday, 16 August) Real-Time: 10h11 Entering An Overbought Range On It's Weekly Chart Recently High Bullish Momentum However, Now Most Overbought Since May 2021 Lester Davids Analyst: Unum Capital

Wednesday, 25 September 2024, 08h45 Lester Davids Analyst: Unum Capital

Wednesday, 25 September 2024, 08h28 Technical Ratings and Price Action Probability For 3x Time Frames Daily Chart Lester Davids Analyst: Unum Capital

Wednesday, 25 September 2024, Pre-Market The buy re-entry range at the rising 21-week EMA is likely to return close to 4000 points should the positive sentiment from the Chinese government stimulus translate into strong buying. In total the, both the short (1st) and then long side has generated roughly 8000 points over the month. At current levels, the price action/candle structure remains strong, with the current short term rating being high bullish momentum / approaching overbought. [Premium Post] Zooming out on the JSE Top 40 Index, here's what I noticed [READ NOW] Previous Post: Friday, 20 September 2024 REAL-TIME: 12H49 Ticker: J200 or SA40 Short Term Update + Analysis. On Monday 09 September, the rising 21-week exponential moving average was flagged as a buy/long re-entry. The index then traded into this level, which was followed by a bullish V-shaped reversal which reflected strong interest from market participants who have looked to re-accumulate following the previous unwind from a short term overbought range. From 73000, the index advanced to test a short term high of a 76278 on Thursday, which was just below the previous breakout level. The technical trend rating has since shifted from 'high bearish momentum/approaching oversold' to 'strong'. Previous Post (Tuesday 17 September 2024) REAL-TIME: 15H06 Ticker: J200 or SA40 Previous view, as communicated: Lester Davids Analyst: Unum Capital

Tuesday, 24 September 2024 at 13h48 The Chinese government has introduced measures to support economic growth. TradingEconomics summarizes it well: The People's Bank of China (PBoC) introduced several measures to boost the economy amid concerns that the official growth target of around 5% might be out of reach due to recent weak data. Governor Pan Gongsheng said in a media briefing today that the central bank will cut the reserve requirement ratio (RRR) by 50bps, which will inject CNY 1 trillion into the financial system, with the possibility of another reduction of 0.25 to 0.5 ppts later this year. In addition, the PBoC will lower the seven-day reverse repo rate by 20bps to 1.5%, aiming to reduce short-term borrowing costs for banks. This move is accompanied by a 30bps reduction in borrowing costs of the medium-term lending facility. Mortgage rates will also be trimmed, with an expected average drop of 50bps, and the minimum down payment for second homes will be cut to 15% from 25%. Pan did not specify when the moves will take effect. Tuesday's action came after the US Fed started its monetary easing cycle with a large rate cut. These are the 3 ways in which clients of Unum Capital have been prepared for opportunity. Commodities / Copper Futures: Strong rebound off the re-test level below $4.00. Now trading at $4.49 ( Original Note Here ) Chinese Technology: Alibaba - A Strategy Alert at $73.68. Today +$94.76 in pre-market ( Original Note Here ) - Edit: Closed 97.22 in the U.S. tonight!!!! +30%!!!!! Kumba Iron Ore (KIO) - Buy idea at R322. Recent high +R357.69 ( Original Note Here ) For frequent access to actionable research insights and opportunities, get in touch today. Lester Davids Analyst: Unum Capital

Tuesday, 24 September at 11H16 The People's Bank of China (PBoC) introduced several measures to boost the economy amid concerns that the official growth target of around 5% might be out of reach due to recent weak data. Governor Pan Gongsheng said in a media briefing today that the central bank will cut the reserve requirement ratio (RRR) by 50bps, which will inject CNY 1 trillion into the financial system, with the possibility of another reduction of 0.25 to 0.5 ppts later this year. In addition, the PBoC will lower the seven-day reverse repo rate by 20bps to 1.5%, aiming to reduce short-term borrowing costs for banks. This move is accompanied by a 30bps reduction in borrowing costs of the medium-term lending facility. Mortgage rates will also be trimmed, with an expected average drop of 50bps, and the minimum down payment for second homes will be cut to 15% from 25%. Pan did not specify when the moves will take effect. Tuesday's action came after the US Fed started its monetary easing cycle with a large rate cut - Source: TradingEconomics Previous Post (26 August 2024) US Trading Session (Mon, 26-Aug-2024), Time: 19h00 (S/Africa) Was $3.95 vs a multi-week high of $4.23 today. Previous Post (07 August 2024) Real-Time: 14h36 Trading at it's previous breakout level. Previous Post: UPDATE: Copper has retraced from it's short and medium term overbought levels, having traded above $5.00. This follows an impressive run, one that we discussed on 16 November 2023. The automated model gave us a reading on 15 May, warning of an unappealing reward-to-risk on the upside i.e. expect a pullback. At current levels, the commodity trades in a high bearish momentum regime, approaching short term oversold levels. In addition, it is trading at or around the rising 21-week exponential moving average (EMA), a level at which bulls could re-emerge. The short term trend remains down, however active traders would want to monitor for early signs of price stabilization which could signal the start of a base and potentially a bullish reversal. Downside risk, as highlighted on 15 May: Upside Opportunity on 16 November 2023: Lester Davids Analyst: Unum Capital

Pre-Market: U.S Trading Session / South African Time: 13h29 Share Name: McDonald's Corp Ticker: MCD Lester Davids Analyst: Unum Capital

Pre-Market U.S. Trading Session / Real-Time (South African; 15h02) With the Federal Reserve cutting interest rates, money could potentially flow out of developed markets, into high yielding EM geographies. In addition, high valuations in the U.S. may be a driver for flows into markets with a lower valuation/rating. The Emerging Markets ETF (EEM) trades at a substantial discount to the S&P 500. Current level: $43.78 Medium Term Target: +$48 Stop-loss/invalidated below: $37 Lester Davids Analyst: Unum Capital