Pre-Market
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As a long term shareholder, it may be time to reduce/trim long positions.
One of the benefits of being a client of Unum Capital means that you have access to our high quality research insights that identify opportunities with appropriate reward-to-risk and also, help you manage risk.
While the primary focus within research is short to medium term opportunities to generate cash flow, taking a 'bigger picture' view can create additional opportunities from a long term portfolio perspective.
An example would be a share listed on the JSE. One where I discussed the weekly chart with a medium term view. At a price of R41, the share has over the 3+ years since publication gained over 225% to trade above R134.
Now, considering the extent of the gain, as well as the new technical position, my analysis recognizes the price at a key inflection point which may be indicative of an unappealing reward-to-risk on the buy/long side.
With multi-month and multi-year trend lines in focus, a breach of the medium term incline support could see the share reverse it's gains.
As a long term shareholder, it may be time to reduce.
Lester Davids
Analyst: Unum Capital
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