Trading Desk Research: 28 May 2019

Trading Desk Research: 28 May 2019

Research – 28 May 2019

Lester Davids, Unum Capital Trading Desk


1 USDZAR: The pair continues to display an upward bias, continuing to push to the upside of the bull fag formation that has been in development since February 2018. The price remains above the 40 and 200-week moving averages, both of which continue to trend higher.
2 Kap Industrial Holdings: Slightly concerned with weekly chart price action. Multi-week top formation. Consolidating below 200-week. If 700c is lost as support, 600c and 546c could open up as targets.
3 Mr Price Group (MRP) Weekly: The long term price trajectory for the share has continued to show a downside bias. Following a break of the bear flag formation during January 2019, the ‘new support’ failed to hold during February 2019 while late April saw a rejection of the breakdown level. The long term, 200-week moving average been lost as a support level and is starting to turn to the downside reflecting a significant change in trend and continuing of the fundamental de-rating.
4 Truworths (Monthly): Very large multi-year triple top formation. Needs to hold R62 or R41 becomes a strong possibility, longer term. To be viewed in the context of an equity portfolio position.
5 TFG (Monthly): Price strongly resembling May 1996 and September 2011. Investors to take note of the RSI pending breakdown.
6 Naspers (Monthly): Should we close the month of May around current levels, NPN will see a bearish engulfing candle having formed. In addition, the large bearish divergence with the RSI now drifting toward the 50 level while the bollinger band is starting to make a downside shift.
7 Rand Platinum v Rand Gold: Potentially a small rebound for RP v RG before a another leg lower.
8 +SGL/-ARI: Pair’s the falling wedge price pattern has played out around 90% and is trading at a 4-month low.
9 Richemont: New accumulation and distributions zones on chart.
10 Mondi: On a price/earnings ratio of 11x time Mondi appears eager to make a bullish reversal with the MACD making a bullish crossover while the RSI (46) is pending a break of the downward trend line. Monitoring.
11 NewGold Palladium: Long Setup Pending. Bullish engulfing candle being printed, approaching a rising 200-day MA.

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