End of week 26Apr19. Another great week for #Coronation & #Naspers. FTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Rebosis Property 30
South32 32
ArcelorMittal 33
Intu Properties 36
Hosken Consolidated Investments 36
Overbought:
Coronation 81
Blue Label Telecoms 78
Santam 73
Transaction Capital 72
Super Group 72
Spending some time on South32. This is not a share I’m currently personally holding & still fundamentally prefer other Mining Houses in this sector. The share is however making a very interesting formation and as mentioned, is highly oversold according to its 14-day RSI. The 2-year strong momentum still seem to be intact, while Thomson Reuters consensus (according to all analyst forecasts) have a R38.94 (14.5% upside) target price on S32.
For short-term traders who are considering a long position in South32, could possibly watch R32.25 as a possible entry point. I would set my stop-loss to last year Novembers levels of R30.40.
On the upside, resistance could be found at the 200-day (R36.25) and then the 50-day (R37.60) moving averages, with the top of the Pennant pattern (at R38.50) being a strong resistance point. Last mentioned will also be my ultimate target price.
Oversold:
Rebosis Property 30
South32 32
ArcelorMittal 33
Intu Properties 36
Hosken Consolidated Investments 36
Overbought:
Coronation 81
Blue Label Telecoms 78
Santam 73
Transaction Capital 72
Super Group 72
Spending some time on South32. This is not a share I’m currently personally holding & still fundamentally prefer other Mining Houses in this sector. The share is however making a very interesting formation and as mentioned, is highly oversold according to its 14-day RSI. The 2-year strong momentum still seem to be intact, while Thomson Reuters consensus (according to all analyst forecasts) have a R38.94 (14.5% upside) target price on S32.
For short-term traders who are considering a long position in South32, could possibly watch R32.25 as a possible entry point. I would set my stop-loss to last year Novembers levels of R30.40.
On the upside, resistance could be found at the 200-day (R36.25) and then the 50-day (R37.60) moving averages, with the top of the Pennant pattern (at R38.50) being a strong resistance point. Last mentioned will also be my ultimate target price.