Unum Capital Trade Idea: Nedbank Group Ltd

Unum Capital Trade Idea: Nedbank Group Ltd

Dear Trader

With the local currency shifting from a (sudden) overwhelming strength to relative under-performance versus it’s emerging market peers, primarily due to a strong US Dollar as well as the heightened concerns around power utility Eskom, we may have another opportunity for a trade. This time, it’s the banks that catch my eye as a potential short due to the fact that the sector speaks directly to the economic prospects and sentiment in South Africa. Specifically, Nedbank has breached it’s incline support trend line and is currently back-testing the breakdown level. With the Rand seeing early-session strength, traders could use the rebound in the Nedbank to short/sell the share in anticipation of a bearish medium term reversal.

These are the trade levels:
Short/Sell NED at current levels: R281.40
Stop-loss: R286
Take Profit Target: R266
EM Currencies 5-Day Performance
 

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