I consider the MONTHLY CHART to be the most underutilized time frame in technical analysis, with the time frame acting a strong guide for the second time in 18-months, helping me avoid declines of 65% and 26% respectively (see the two related ideas).
AMS is approaching our latest short/sell target of R1500 (-26%), from the 21-March note at R2115. As noted in my research report at the time: "If you've held this name in a long term portfolio for the last 5 years, should you be selling? Yes. From it's January 2016 low of R156 to it's March 2021 peak of R2224, the share is higher by over 1300% and technically, it appears overextended: (1) the price is ~226% above it's 50-month exponential moving average. (2) although strong, the RSI has developed it's first lower high. (3) in December 2020, we saw the price breach resistance of it's multi-year swing highs (May/June 2008) and (Dec-2019 to October 2020). Often a share will perform a back-test of the breakout level, which could see the share retrace to R1500. Chart Time Frame: Monthly".
If you are not utilizing the monthly chart in your approach, you may be missing out on an alternative perspective to take advantage of opportunities as well as more importantly, to manage risks.
AMS is approaching our latest short/sell target of R1500 (-26%), from the 21-March note at R2115. As noted in my research report at the time: "If you've held this name in a long term portfolio for the last 5 years, should you be selling? Yes. From it's January 2016 low of R156 to it's March 2021 peak of R2224, the share is higher by over 1300% and technically, it appears overextended: (1) the price is ~226% above it's 50-month exponential moving average. (2) although strong, the RSI has developed it's first lower high. (3) in December 2020, we saw the price breach resistance of it's multi-year swing highs (May/June 2008) and (Dec-2019 to October 2020). Often a share will perform a back-test of the breakout level, which could see the share retrace to R1500. Chart Time Frame: Monthly".
If you are not utilizing the monthly chart in your approach, you may be missing out on an alternative perspective to take advantage of opportunities as well as more importantly, to manage risks.
