Absa showing relative strength vs Satrix Financials (STXFIN)
Monthly Chart = Important.
Note the igniting bar + 7-month RSI
Previous Post: ABSA GROUP Voluntary Trading Upside Accelerates Fundamental Re-Rating
Coming off a low base, materially stronger earnings growth is expected for 2024.
The share has materially outperformed it's peer group this week but remains muted over the long term. This gives the share room to advance over the medium.
To re-iterate, my long term target is R220.
Please scroll down for the previous posts.
Previous Post: ABSA GROUP: Absolute & Relative Re-Rating
Thursday 05 December 2024 (Time: 06:21)
In March, below R145, Clients were alerted to an opportunity to accumulate, driven by the model reading.
Yesterday, the share was the strongest performer amongst the financials.
On an absolute basis, the share is trading at multi-week highs.
On a relative basis, the share is looking to breach it's downward trend vs the JSE Top 40 Index.
To me, it looks the like the start of a re-rating and the potential start of relative outperformance. Remember, it's been very cheap with an appealing valuation.
The ratio chart is shown below:
Previous Post: Absa Group: Relative Value
Monday 25 November 2024 (Time Published: 06h28)
Fundamentally undervalued + has not participated in the re-rating of South African equities. Whilst it is trading off the Q2 lows, the share remains in a multi-year consolidation phase and off it's all-time highs. Long Term Target = R220. View as of Thursday 21 November at 09h59.
Previous Post: TRADER'S TOOLBOX: Absa's 3 Major Turning Points - Tuesday, 20 August 2024
The major turning points in the share were late March, mid June and early in August. These 2 longs and 1 short triggers helped traders position for the subsequent moves to take advantage of cash-flow generating opportunities.
BUY/LONG
Discussed in detail, along with the Tactical Trading Guide on Monday, 25 March.
The charts below are also adjusted to include dividends.
Short/Sell (Reading/Chart 1)
Warning that a buy/long was unappealing.
Short/Sell (Reading/Chart 2)
Alerting to a 1 to 2 day/week short/sell setup.
Buy/Long - Monitor For Bullish Reversal Opportunity
V-Shaped reversal followed by massive gap up during yesterday's session (earnings release).
Clients of Unum Capital are often alerted to key technical developments which include readings from the Tactical Trading Guide. This acts as a guide which helps to identify both opportunities and risk. To become a client, contact the Unum Capital Trading Desk: E-mail: tradingdesk@unum.co.za| Call: 011384 2923
Lester Davids
Analyst: Unum Capital
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