Active Trading Plan - Friday, 18 October 2024

This page is updated as the price action and news flow develops and, as opportunities are identified in real-time. Research is published DAILY and can be accessed at the following link: www.unum.capital/blog

Yesterday (Thursday) I discussed Standard Bank, Sempra, Spar, DRD Gold, JSE Sector Ratings (and more). In case you may have missed it, you can read it here: https://www.unum.capital/post/active-trading-plan-thursday-17-october-2024

Unum Research Attains 3rd Place In The 2024 Securities Broker Awards.

COVERAGE: Notes Added Thus Far Today/Overnight

GFI Gold Fields Ltd
SSW Sibanye Stillwater
My Watchlist: Short/Sell Candidate
TGA Thungela Resources - Cash Flow For Active Traders
Shoprite Holdings (SHP)
Truworths (TRU)
Bidvest Group (BVT)
Exxaro Resources (EXX)
Tiger Brands (TBS)
Most Overbought/Oversold
Strongest/Weakest Open To Close

GFI Gold Fields Ltd [Friday, 18-Oct, 08h05] - Big Bounce Off The Rising 21-Day EMA (Flagged Via Strategy Sheet) - At current levels, it's a poor reward-to-risk for fresh buy/long trades.

SSW Sibanye Stillwater [Friday, 18-Oct, 08h03]

TGA Thungela Resources [Friday, 18-Oct, Pre-Market]

Short Term Ccash Flow For Active Traders. At the beginning of the week, my trade setups sheet highlighted TGA as a potential buy/long re-entry on a pullback to the 21-day EMA. The share traded into this level on Wednesday and yesterday (Thursday) which was followed by a strong rebound from R116 to above R121. Recently, I also highlighted the share as a potential bullish reversal opportunity from 10692, from which we saw it trade up to a high above R124. Prior to this the TTG was useful in highlighted the incoming weakness at the prior swing highs and warning of a potential pullback to the 8 or 21-day EMA.

SHP Shoprite [Friday, 18-Oct, Pre-Market]

Looking to breach short term support / poor candle structure / technical regime: weak / currently capped by the declining 8-day EMA / below the declining 21 & 50-EMA which will act as a resistance range upon an immediate rally.

TRU Truworths [Friday, 18-Oct, Pre-Market]

Zooming out (weekly chart), the general trend has been strong, with the share now making it's 3rd attempt to clear the prior highs while it is the 4th test of the multi-year resistance at R115 to R118. With the trend strong and the valuation not excessive, one would think that the resistance is eventually breached to commence a new leg/multi-year regime.

BVT Bidvest [Friday, 18-Oct, Pre-Market]

It's been over year and the share is trading at the same level. In a way, it appears as if this share hasn't participated in the SA-Inc rally. Perhaps the immediate effect of 'optimism' is first seen in retail and banking stocks and then, down the line, in the industrial counters which will benefit from a 'longer term' improvements in infrastructure. Over the last few week, it's been a back and forth consolidation just below the highs. If you are a short term trader with a laser sharp focus, then the volatility is welcomed and, if you're a medium term trader looking for a name that hasn't yet run too hard, then the aforementioned consolidation is a prime structure to potentially catch the early stages of a move. I'd wait for confirmation above R298 to indicate that a new trend to the upside has commenced.

EXX Exxaro Resources [Friday, 18-Oct, Pre-Market]

Recent client buy/long idea at R153 which traded up to R175. The share has since retraced and, has been consolidating in the form of a falling wedge technical formation. Noted is the slight improvement in candle structure (strong open to close). It's possible that this falling wedge formation has several days to play out however, I'd be looking for a strong break above the downward trend line to trigger a resumption of the medium term upward trend.

TBS Tiger Brands [Friday, 18-Oct, Pre-Market]

While the long term structure remains appealing (monthly chart published on 01-August), the short term momentum appears to be waning, with resistance at R248 and deteriorating candle structure. The incline support extending back to the swing lows of late September also appears to be at risk. The big breakout level was at R215, which is a level to which the price could revert in the short term.

MY WATCHLIST: Short/Sell Candidate Momentum has been very strong, with the likelihood that the previous swing highs will be tested. To become a client email lester@unum.co.za

[Friday, 18-Oct, Pre-Market]