Unum Capital: FX and Equities - Trading Opportunities

Unum Capital: FX and Equities - Trading Opportunities

#1. US Dollar / Canadian Dollar – USDCAD

Following a break of the short term parabolic arched support (highlighted in blue), the price has retreated sharply and is now approaching the incline support level which has been in place since February 2018, helping traders reach the prior short/sell target and score just above 500 points from 31-Dec-2018. (see here: https://goo.gl/p5cAA2).

While we may not yet be excessively oversold, in my view, the probability of a short to medium term rebound is relatively high, thus traders could look to position themselves to take advantage of a potential bullish reversal.
My provisional trading levels would thus be as follows:
Buy USDCAD 1.3050
Stop-loss: 1.2970
Take Profit Target: 1.3400
Chart Time Frame: Daily
#2. Australian Dollar / Japanese Yen – AUDJPY

As per the two-hour chart, the price has started to retreat from it’s upward channel resistance level. The level I am monitoring is approximately 79.14, which is the congestion zone as well as the mid-point of the upward channel. This is where traders could look to take a buy/long position provided we see appropriate (strong support) candle structure as the price declines. Chart Time Frame: Two-Hour
#3. Euro / US Dollar – EURUSD
Following a short term bullish breakout on Friday (31/01/2019), the price has retreated and is approaching horizontal support. This can be seen on the two-hour chart, where 1.1434 act as a primary support, followed by 1.1413 which appears to be a higher probability support levelAlternatively, a move back up toward resistance sets up a short/sell trade. Chart Time Frame:Two-Hour
#4. Spar Group (SPP)
Within the JSE retail sector, it is PIK and SPP which are yet to provide the market with trading updates. A look at SPP’s daily chart, sees the price having retreated from R208/210, a level which we have previously preferred as distribution (short) zone. Much lower, a ‘gap’ may be filled around the R181.65 level. This is where traders could look to be accumulate for a short term rebound, should we see the price drop toward this level. Alternatively, we should we see the price trade back near the 204/205 level, this could be used to short/sell the share.
#5. Pairs Trade: Long South 32 / Short African Rainbow Minerals (ARI)
South 32 lagged it’s mining sector peers and more specifically African Rainbow Minerals. Historically there has been a strong correlation between the two shares which has broken down, opening a wider ‘gap’. At current levels, the divergence between the shares has become wider, creating an opportunity to go long (buy) South 32 and go short (sell) African Rainbow Minerals. Please contact the trading desk to discuss various pairs trading opportunities. 
#6. Quilter plc (QLT)
On Friday we saw Quilter plc close on it’s incline support level, creating an opportunity for traders to take a buy/long position in anticipation of a move higher. Specifically, traders should take into consideration the intraday price action – whether the share holds it’s incline – as further confirmation that a bullish short term reversal could be traded.
Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Lester Davids
Unum Trading Desk Analyst
e-mail: clientservices@unum.co.za
Tel: 011 384 2923

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