Unum Capital: 4 Shares Challenging The Channel

Unum Capital: 4 Shares Challenging The Channel

I don’t know about you, but I like to keep things simple. Simple is just better, and when it comes to analyzing charts for trading opportunities, sometimes the most simple strategies are often the most profitable. For example, a break above resistance could set up a new long or a breakdown from support could set up a new short. A bounce off the 200-day moving average could trigger a buy or double top could trigger a sell. Today I am going to keep it simple (and short) by looking at a channel or trend line break that signals a change in trend, in the process identifying 4 trading opportunities. Let’s Go.
#1. Pioneer Foods Group (11560c)

A look at the weekly chart sees the price having broken out of a downward channel that had been in place since December 2017. This follows a rebound off the lower boundary of a larger sideways to downward channel that had been in place November 2014. In terms of key price levels, R110 appears to be where buyers have become interested.

#2. Stadio Holdings (433c)

SDO is trading back near the levels where it made it’s JSE debut. This follows the price having traded in a downward channel since peaking at 919c in November 2017. Since April the RSI has made higher lows while the price action appears positive, reflecting buying interest at the 400c to 430c level.

#3. Ethos Private Equity Capital Partners, (790c)

Following the break of the downward trend line in place since late January, the price retraced to re-test the breakout level, developing a short term channel from which we now see a breakout. The 50-day moving average has started to flatten out and is now providing a support level for the share while the candle formation (wicks) suggests that there may be buying interest around current levels.

#4. H&M (SEK142.94)

Global retailer H&M has been under significant pressure over the medium and long term. These share is down from 360 in 2015 and recently tested a low of 117 in March 2018. Yesterday we saw the share break out of a short term channel, also described as a bull flag. The target to the upside is 154, which is the top of the channel, with further potential to test the 200-day moving average at 162.

If you are interested in exploring these trading opportunities, please get in touch with the trading desk today.


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