Trade Discovery Ltd with Unum Capital.
To get started, email lester@unum.co.za
I'll be the first to admit that I only saw this (time-stamped) model reading on Thursday evening and not on Wednesday evening when it was released. Of course, on Tuesday evening the model was telling us that the buying was aggressive and that we should not chase the share off the massive rebound. Nevertheless, this has been a great share for clients who can trade on both the long (buy) and sell (short) side. If you've been following our commentary, you'll know we've discussed both directions with good timing. Well done to clients who have been involved.
Previous Post: Trading Discovery: R18 to R20 Rally Off Note + Price Action Model
Generating Cash Flow
Print above R196 today.
Note: The share bottomed on 28 January. The previous evening, the price action model alerted traders that the reward-to-risk had become attractive for a buy/long position, from which we have seen a rally from R176 to R196.
Well done to traders who may have capitalized on the opportunity (both on the short and then long side).
Previous Post: Trading Discovery: Long/Short
Now rebounding, in line with my previous post (28 January) as well as the prior day (27 January) price action model reading.
Longs now trading 600c higher! (Traded above R186 today, from R178)
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Previous Post (Tuesday 28 January): Trading Discovery: R20 Lower, Consider Covering Short Position
For clients who may be short (i.e. have sold at higher levels), consider partially covering your short positions.
FURTHER UPDATE as of Tuesday 28 January (09h11):
Now trading 2000c 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)
Candle structure: momentum being lost + relative distribution
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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