Chart as of 16h10
The share is showing strength below resistance and looking to emerge from a consolidation range. This looks like a continuation trade.
The above chart is an update to my previous post (see below):
In addition to the local names I cover, I also scan for opportunities in offshore market. Two picks that have worked in my favour have been South Korea's SK Hynix and India's Mahindra and Mahindra. These were very similar, if not identical technical setups that offered a momentum play over many months.
Below are the charts from TradingView which shows how these buy/long ideas have developed. The green shaded area is the time period after I published the ideas.
Dis-Chem Pharmacies, in my view, has a similar structure. Is it setting up for a similar move? The candle structure is improving and the share has traded in a sideways range, having shown little advancement since Q1. A weekly close above 3451c could be a trigger for further upside momentum.
To trade, or open a new account, contact the Unum Capital Trading Desk: E-Mail: tradingdesk@unum.co.za | Call: 011 384 2923
Lester Davids
Analyst: Unum Capital
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