Pre-Market
Ticker: DSY
DSY is due to report earnings on Thursday 19 September.
With the potential for post-earnings volatility, both buy/long and sell/short levels could be considered.
Overview: On a weekly basis, the share is in a high bullish momentum regime, having appreciated from R107 to R157 in just over 3 months. This however means that the share is approaching medium term overbought levels which favour a sell/short on any overextension.
SELL/SHORT ANALYSIS: The previous swing high is at R160 however, there is potential for the share to overshoot this level to the upside. Should this range fail to hold, traders could consider selling into, upon confirmation of weak candle structure (monitor the 15-min, 30-min, 1H time frames).
BUY/LONG ANALYSIS: I previous highlighted R113.50 as a long trigger (discussed in June), from which we have seen a significant price appreciation. Upon a pullback, which may be triggered by weaker results, the rising 50/75-day EMA range could act as a support zone and a level into which buy/long traders could be considered. This also coincides with the previous short term breakout level.
Note: These levels are provisional and are subject to change based on the real-time price action.
Lester Davids
Analyst: Unum Capital
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