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Discovery: 2-Month Low + Unwind From Overbought

Writer's picture: Lester DavidsLester Davids

Updated: 5 days ago

Trade Discovery Ltd with Unum Capital.

To get started, email lester@unum.co.za


FURTHER UPDATE as at end of day Friday 24 January: Now trading 1500c lower.


The move is in line with our comments on 12 December, 02 January and then again on 15 January.



Previous Post: Discovery Ltd: Relative Distribution Phase + MACD Bearish Crossover

Points to note (also stated on the chart)

  1. Candle structure: momentum being lost + relative distribution

  2. MACD negative crossover


 

Previous Post: DISCOVERY Extended Relative To The JSE Top 40 Index

  • The chart reflects a ratio of of DSY relative to the JSE Top 40 Index where the distance versus the 40-week simple moving average reflects an extended level (+29% in December 2024).

  • Note the previous extension coinciding with bearish reversal, or at best, the start of period of consolidation.


 

Previous Post: DISCOVERY Pending Bearish MACD Crossover + Most Overbought Reading in +10 Years

Thursday 12 December 2024 (Time: Pre-Market)

DSY Discovery Holdings

  • Notes on the slide below


Lester Davids

Analyst: Unum Capital



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