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Writer's pictureLester Davids

Active Trading Plan - Tuesday, 15 October 2024

Updated: Oct 15

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 (Monday) I discussed Northam Platinum, Ethereum, Clicks, Standard Bank, Old Mutual, SPDR Metals and Mining ETF (and more). In case you may have missed it, you can read it here: https://www.unum.capital/post/active-trading-plan-monday-14-october-2024

 

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

 

COVERAGE: Below are the items covered thus far today/overnight. Included on this page are views expressed from which overlaps from yesterday's/the last U.S trading session (both pre-market and intraday).


  • FX: EUR/USD

  • Impala Platinum (IMP)

  • Naspers (NPN) - Approaching The Rising 21-EMA

  • Sector Breadth

  • New Highs/Lows

  • Discovery (DSY): Take Note

  • Tencent Holdings

  • BHP Group (BHG) - Cash Flow For Active Traders

  • Most Overbought/Oversold

  • Strongest/Weakest Open To Close

  • [Global Ideas] Cisco Systems (CSCO)

  • [Global Ideas] Invesco S&P MidCap Quality ETF (XMHQ)

  • [Global Ideas] Marvell Technology (MRVL)

  • [Global Ideas] iShares Expanded Tech Sector ETF (IGM)

  • [Global Ideas] iShares U.S. Transportation ETF (IYT)

 
 

FX: EUR/USD

  • Noted added on Tuesday, 14 October 2024 at 16h05

  • Model reading + price action aligning. Good spot to buy for a short term rebound (current levels or slightly lower)


IMP Impala Platinum - Down by close to 5% so far today

  • Note Added on Tuesday, 14 October 2024 at 12h22

  • We saw this reading (see attached) on Friday evening and again last night, warning around the potential failure to hold the highs. Remember IMP went from 70 to 106 within a month (along with it's peers also advancing by a similar margin). It's never a straight line up, so the pullback is very normal. Not only does this data set help traders find opportunity, it also helps to manage risk.



Naspers (NPN)

  • Note Added On Tuesday 15 October 20224 at 09h16

  • Now approaching the rising 20-day EMA - could overshoot to the downside, but for active traders, this might be a level to pick up a few ZARs.


Sector Breadth

  • Note Added On Tuesday 15 October 20224 at 06h37

  • If you want to understand your current market environment, then this is the kind of data you need to continuously monitor.

  • If you don't understand why it's important, chat to me and I'll explain.


New Highs/Lows

  • Note Added On Tuesday 15 October 20224 at 06h37

  • If you want to understand your current market environment, then this is the kind of data you need to continuously monitor.


Discovery (DSY): Take Note Of This Model Reading

  • Note Added On Tuesday 15 October 20224 at 06h03

  • Last night, as I reviewed the Tactical Trading Guide, this reading caught my eye.

  • For some context, this has been the most recent levels on my DSY chart.

  • Now R172...but buy/long trigger months ago at R113.50.


Tencent Holdings

  • Note Added On Tuesday 15 October 20224 at 05h57

  • Naspers have us a model reading which warned of a short term pullback. For both NPN & PRX, this is likely to continue as Tencent continues to unwind from short term overbought conditions.

  • Tencent previously exceeded both upside targets and is now likely to re-test it's previous breakout level, which is in line with it's 50-day EMA.


BHP Group (BHG) - Cash Flow For Active Traders

  • Note Added Monday 14 October 20224 at 18h33

  • As discussed at the top of last week, a pullback to the 21-day EMA was the most probable price action scenario. This also represented an area for traders to re-enter on the buy long side for an ultra short term trade. Here, the share found support at the 21-day EMA, trading from R501 to R520. This entry level was also marked on the chart as a 'next best probability buy range'.


As discussed last week Monday:

BHG Follow Up Chart:


Strongest/Most Overbought/High Bullish Momentum as of the last close.

Weakest/Most Oversold/High Bearish Momentum as of the last close.

Most Dominant Buyers (Open To Close)

Most Dominant Sellers (Open To Close)


Invesco S&P MidCap Quality ETF (XMHQ)

  • Note Added During US Session (Monday 14 October 2024) at 20h20 (S/African Time)

  • XMHQ is a passively-managed portfolio of 80 securities that tracks the S&P mid-cap 400 Quality Index. The equities are selected based on the highest quality score, calculated by the following three equally-weighted fundamental factors: (1) return-on-equity (2) accruals ratio, and (3) financial leverage ratio. The index is being weighted by the total of its quality score multiplied by its market capitalization and is rebalanced semi-annually.


Marvell Technology (MRVL, $77.50)

  • Note Added During US Session (Monday 14 October 2024) at 20h14 (S/African Time)

  • Very strong price action below resistance - looking for the price to emerge from a multi-month consolidation range. Buy/Long Idea.


iShares Expanded Tech Sector ETF (IGM)

  • Note Added Pre-Market US Session (Monday 14 October 2024) at 16h17

  • Medium Term Portfolio Idea: Buy

  • Breaking out from a multi-month consolidation range + not extended at all.

  • Why IGM? (1) Broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors (2) Access to hardware, software, internet marketing, interactive media, and related companies (3) Use to express a view on North American technology-related companies


iShares U.S. Transportation ETF (IYT)

  • Note Added Pre-Market US Session (Monday 14 October 2024) at 13h50

  • Flashing via a screener, I noticed this setup over the last few days. Now breaking out of a multi-month base.

  • Further upside to $80 - $83.

IYT original chart (14 Jun 2023) is shown below:


Lester Davids

Analyst: Unum Capital



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