Here's What I'm Seeing On The Monthly Chart
Tuesday, 29 October 2024
Time Published: Pre-Market
Ticker: AMS
The 'Monthly' Chart reflects two developments:
(1) An igniting bar, which reflects strong buying activity from month open to month close. The share is however, flat since Q1 which means that while it might be approaching overbought in the short term, there is room for further upside on a high time frame.
(2) The MACD technical indicator has developed a bull crossover - it's first since October 2009.
Previous Buy Idea: 10 June at R576 (now R200 higher at R776)
Previous Post: Anglo American Platinum: Long Term Charts & New Lows - Wednesday, 11 September 2024
• PRE-MARKET
Ticker: AMS
I'm old enough to remember when Anglo American Platinum traded above R2100 per share.
Yes, there was a time when platinum shares were untouchable and when selling them was a no-no.
Fast forward close to 3 years later and no-one wants to touch them again (remember 2015 - that's a story for another day).
Here at Unum Capital we produce research that considers multiple time frames, from daily to weekly to monthly.
While other consider monthly charts irrelevant, for us it is a valuable tool in assess reward-to-risks, especially from a portfolio perspective.
Long-time subscribers of my research may recall Anglo American Platinum trading above R2100 per shares.
Some may also recall my view to use the multi-year highs to reduce long term portfolio exposure.
The time-stamped chart (Saturday 20 March 2021 for Monday 22 March) is shown below
Fast forward 3.5 years later and AMS has gone from R2115 at the time to R570 (it did trade as low as R558 in recent months).
After yesterday's market close, Anglo American announced that it would be conducting a bookbuild, offering 13 million AMS shares.
This will no doubt put pressure on the already depressed AMS share and is likely to see it trade at fresh multi-year lows.
Whilst we don't know what the extent of the selling will be, the R480 to R425 range is the previous swing lows which also coincides with the previous breakout.
There will another opportunity to buy, but for now we watch and watch until the dust settles.
For now, here's a sneak peek of my zoomed out (flash) view:
Lester Davids
Analyst: Unum Capital
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