Unum Capital: Technical Trade Note (3 Shares)

Unum Capital: Technical Trade Note (3 Shares)

Dear Trader

This morning, three technical trading opportunities have hit my radar:

#1. TFG: Following a pullback from above the R197 level, shares of TFG (The Foschini Group) have managed to find a short term base, holding onto the breakout trend line that stretches back to May 2018. Over the last three weeks we have seen the price form a base with a ‘W’ formation suggesting a reversal. In addition, the technical indicators are supportive of a bullish move. Here, the MACD has made a bullish cross, the histogram has turned positive, while the RSI has turned up and is trading back above the 50 level, within bullish territory.

Taking a short term view, I view the opportunity as a buy/long with the following trade levels:

Buy TFG below 17600c
Stop-loss: 17100c
Take Profit Target: 18800c

Please click on the following link to view the chart: https://www.tradingview.com/x/rDPDvvnw/

#2. Massmart: Shares of retailer MSM have found buying support in the 6120c to 6281c trading range and could be looking to make a technical recovery following a sharp drop throughout the month of May. The price has made a second consecutive close above the downward trend line while the technical indicators (MACD and Relative Strength Index) suggest a move up from oversold levels. The price has also formed a double bottom where a break above 6766c would add to the short term bull case.

Taking a short term view, I view the opportunity as a buy/long with the following trade levels:

Buy MSM below 6740c
Stop-loss: 6210c
Take Profit Target: 7400c

Please click on the following link to view the chart:
https://www.tradingview.com/x/bOV9cdeN/

#3. Over the past seven sessions, Brait has showed steady price action, appreciating from just below the 1700c level to it’s last close of 1880c. The short term technical setup remains positive as the price develops a cup and handle formation. Supported by it’s Relative Strength Index (RSI) which has moved up from oversold territory, a break above the resistance level of 1884c would signal the potential for a further short term recovery.

Trade Levels:

Buy Brait on a break of 1895c
Stop-loss: 1805c
Take Profit Target: 2015

Please click on the following link to view the chart: https://www.tradingview.com/x/ev387yct/
An image

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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