Trade Naspers with Unum Capital.
To get started, email lester@unum.co.za
Naspers is starting to stabilize following a sharp drop to short term oversold levels. Using both manual and automated insights, traders/clients were well-prepared to capitalize on a potential rebound. Prior to this prints at extremely overbought levels (early October) as well as the note on 05 January (before the massive sell-off) considered the potential for downside (driven by the model i.e. Tactical Trading Guide). Well done to traders/clients who may have capitalized on the opportunities.
Previous Post: Relative The Top 40, Naspers Is Trading In A Short Term Oversold Range (Monday 13 January) at 15h08
Previous Post: Naspers: Well Done, Short Sellers (Tuesday 07 January)
Naspers: The share has fallen sharpy, in line with the model reading (published 05 January) which showed that the declining 8/21-EMA could be used as a level into which to initiate short/sell positions. On the back of geopolitical company-related developments (China/military etc.), the share declined by over 9%, reached it's rising 50-week moving average and it's 200-day simple moving average. The candle structure remains poor, with potential for further weakness. For traders looking to re-enter, it would be best to wait until there is stabilization on the lower time frames (1-hour and 4-hour etc.).
The pullback is also in line with the Tactical Trading Guide seen at the peak on 02 October (peak), which warned traders that the reward-to-risk was unappealing and that a consolidation and pullback can be expected. See the time-stamped reading below:
Previous Post: Naspers Price and Trend Analysis (Sunday, 05 January 2025)
Price Action Model with 3x Time Frames
AI-Assisted Summary of the above Price Action Model
Overall, the price action model suggests a bearish short-term trend with a potential for bullish momentum in the medium and long term. Traders should be cautious in the short term and look for opportunities to sell on rebounds. In the medium and long term, they should look for minor support levels to buy into for a potential rebound.
Price Chart With Moving Average Trends
Technical Trend Ratings (Monthly, Weekly & Daily)
Lester Davids
Analyst: Unum Capital
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