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Writer's pictureLester Davids

Active Trading Plan - Tuesday, 22 October 2024

Updated: Oct 22

Yesterday (Monday's) note was jam-packed with useful insights and opportunities for clients to generate cash flow, with several views that will remain relevant. I published research on British American Tobacco, Mr. Price Group, Pick n Pay, Anglo American Platinum, Pepkor, Moni Plc, SA 10-Bond Yield (and more). In case you may have missed it, you can read it here: https://www.unum.capital/post/active-trading-plan-monday-21-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

 

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

 

COVERAGE: Notes Added Thus Far Today/Overnight


  • Impala Platinum - Into Ultra Short Term Sell Range

  • Anglogold Ashanti - Reduce!

  • Shoprite (SHP) - Covering Shorts or Re-Entering At the 50w EMA

  • Kumba Iron Ore (KIO) - Piercing Candle On Watch

  • US Dollar Index

  • S&P 500 Index

  • DRD Gold (DRD) - Model Reading

  • Satrix Resources (STXRES)

  • Update: Fortinet (FTNT) Named Top Pick At Morgan Stanley

  • Morgan Stanley Raises PT On Palo Alto Networks (PANW) & Maintains Overweight Rating

  • [Global Ideas] Global X Blockchain ETF (BKCH)

  • [Global Ideas] Cleveland Cliffs (CLF)

  • [Global Ideas] Honeywell International (HON)

  • Most Overbought/Oversold

  • Strongest/Weakest Open To Close

 
 

Impala Platinum - [Note Added on Tuesday 22 October at 09h10]

  • Into Ultra Short Term Sell Range at yesterday's high, continuing to pull back back this morning. The medium term structure however remains appealing.


Anglogold Ashanti - Reduce! - [Note Added on Tuesday 22 October at 08h51]

  • Model reading as of yesterday's close:

ANG - as highlighted to Unum Capital clients on Tuesday 08 October.


Shoprite (SHP) - [Note Added on Tuesday 22 October at 08h10]

  • Covering Shorts or Re-Entering At or Just Below The 50w EMA


Kumba Iron Ore (KIO) - [Note Added on Tuesday 22 October at 07h54]

  • Piercing Candle On Watch - The provisional pivot is yesterday's low of 34013c


US Dollar Index Index [Data/Chart as at Tuesday 22 October at 07h32]


S&P 500 Index [Data/Chart as at Tuesday 22 October at 07h25]


DRD Gold [Analysis/Chart as at Monday 21 October at 13h42)

  • This has been a great recent setup, having consolidated above it's 21-week EMA. Now extended to the upside (in the short term).


Satrix Resources (STXRES): Multi-Month Highs. Key Technical Development / Continued Strength / Change of Long Term Trend? If you going back to the first quarter of this year, you may recall my chart on the Satrix Resources vs the Chinese Yuan. In short, this turned out to be the bottom for the group (STXRES), with the ETF rising since then, albeit not without a pullback along the way. Since early August, I have re-iterated my view on the technical structure for Resources, with several constituents having been presented as buy setups over the past two months. Having again reviewed the chart, I have noticed the price clearing it's downward trend which was in place since March 2022. This marks a potentially significant shift in trend that started toward the end of Q1. [Analysis/Chart as at Monday 21 October 2024 at 13h01]



STXRES vs Chinese Yuan - as highlighted to Unum Capital clients on 13 February 2024.


[GLOBAL IDEAS] Global X Blockchain ETF (BKCH)  [Added during the U.S Trading Session, Monday 21 October at 18h34]

  • Strength within a consolidation structure, looking to emerge to the upside.


[Global Ideas] Cleveland Cliffs (CLF) - false breakdown/scoop n score setup [Pre-Market U.S Trading Session, Monday 21 October]


[Global Ideas] Honeywell International (HON) - emerging from a multi-month base [Pre-Market U.S Trading Session, Monday 21 October]


Updated: Fortinet (FTNT) Named Top Pick At Morgan Stanley + Raises Price Target On Palo Alto Networks (PANW) and Maintains Overweight Rating.



Palo Alto Networks (PANW) - as highlighted to Unum Capital clients on 01 October:



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)


Important: Please Note The Following:

 

TECHNICAL SCREENERS: There have been some incredible opportunities to generate cash flow. One of our favorite technical screens is the price vs the 21-week EMA. For new buy/longs ideas, this strategy works well in a market that has been oversold. Here, the share is trades more than 10% below it's 21-week exponential moving average, which may offer a compelling reward-to-risk. Most recently (03 September) I published a screen with several names that matched the criteria. Over the subsequent 6 weeks, the performance has been as follows:


GFI +27% [Also flagged via the Tactical Trading Guide]

KIO +25% [Also published seperately as a trade idea]

IMP +25% [Flagged via the Tactical Trading Guide]

SSW +26% [A separate note looked for break to R14 before a rally to R20]

NPH +33% [Also a Strategy Alert at R93. Friday's high = +R124]

EXX +26% [Also published seperately as a trade idea]

ARI +19% [Also flagged as a provisional buy/long as it approached the swing lows]

MKR +11%


The original screen, as was published, is shown below:


The technical screen was originally published here on Tuesday, 03 September at 14h28: https://www.unum.capital/post/technical-screen-below-21-w-ema-by-10-or-more-tuesday-03-september-2024


This market has, and continues to provide phenomenal opportunities to generate cash flow. Well done to Unum Capital clients that have taken advantage of the opportunity to trade. To get started, contact the Unum Capital Trading Desk.

 

Lester Davids

Analyst: Unum Capital

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