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Writer's pictureLester Davids

Research: Insights & Opportunities - Tuesday, 05 March 2024

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

 

➡️ Tuesday 05-March-2024, 06h30 | Technical Summary: Mid & Large Caps, as of Yesterday's close.

To view the technical summary, click here => https://www.tradingview.com/x/cKuDdFA1/


➡️ Tuesday 05-March-2024, 06h30 | JSE Relative Sector Regimes, as of yesterday’s close. To view the data set click on the following links: Chart #1 | Chart #2 | Chart #3


➡️ Tuesday 05-March-2024, 06h30 | DRD Gold | Update: The rally in gold and gold shares saw the name higher by as much as 15.9% from Thursday’s pre-market reading where both the short term and medium term readings from the Tactical Trading Guide stated: “Reward-to-risk becoming attractive for a small buy/long position”.       

Click here to view the chart => https://www.tradingview.com/x/7V6OwfSx/

 

➡️ Tuesday 05-March-2024, 06h30 | VOD Vodacom Group | Yesterday the share tested a 1-month high, with the signal follow-through (positive MACD crossover + 14-day RSI positive divergence).         

Click here to view the chart => https://www.tradingview.com/x/xNGWqqQy/

 

➡️ Tuesday 05-March-2024, 06h30 | MTN Group | Early signs of price recovery following last week’s market update. As discussed pre-market on Thursday’s the Tactical Trading Guide for the short term (1 to 10 days) and medium term (2 to 4 weeks) stated: “Reward-to-risk becoming attractive for a small buy/long position”.   

Click here to view the chart => https://www.tradingview.com/x/gwd9AxVO/


➡️ Tuesday 05-March-2024, 06h30 | APN Aspen Pharmacare | Update: Yesterday the share hit a 2 year high of 20890c. The first buy/long re-entry was at R150 in February last year, followed by another re-entry idea at 160-164 (on the pullback).



➡️ Tuesday 05-March-2024, 06h30 | Tactical Trading Guide (Share Commentary): Largest 40 Shares By Market Cap. Click here to access the data set => https://www.unum.capital/post/tactical-trading-guide


➡️ Tuesday 05-March-2024, 06h30 | Richards Bay Coal Futures | Strong rebound off $91, which is in line with the long breakout level. The recovery bodes well for related shares.         

Click here to view the chart => https://www.tradingview.com/x/UTlrkbza/

 

➡️ Tuesday 05-March-2024, 06h30 | Brent Crude Oil | Update: For clients, trading oil been profitable with the commodity closing at it’s best level since November. The idea on 07-Decmber was to add back risk, following a SELL in September. At current levels, oil is trading a flat 200-day moving average (currently above it). This follows several tests since November to break above the closely-watched moving average. The most visible resistance has been around the 84.15/84.25 level, with several attempts to clear this level. The aforementioned resistance is also in line with the 50% Fibonacci retracement zone while the 61.8% retracement is around $86.93.     

Click here to view the chart => https://www.tradingview.com/x/qkMjp1x4/



➡️ Tuesday 05-March-2024, 06h30 | QCOM Qualcomm Inc | Approaching buy/long target of $175. Suggested entry was $151.  



 

BVT Bidvest Group: Strong Rally On Results - Was There A Signal? (Reading Time: 2-Minutes)


  • Key Point: The Tactical Trading Guide Serves As Useful Tool For Active Traders

 

Did you know that as a client of Unum Capital, you are able to make use of the various trading tools and data points to support your decision-making process.

 

One of these tools is the Tactical Trading Guide, which helps clients determine and shed light on the following:

 

➜ Whether the reward-to-risk is attractive for a buy/long position?.

 

➜ Whether a share is weak or if aggressive buying is underway.

 

➜ Whether a trader can look to buy a pullback into a key moving average (continuation trade).

 

➜ Whether a share needs to break a range for a new trend to be determined (bullish or bearish).

 

➜ Whether a traders needs to monitor for a change of character that could lead to a bullish or bearish reversal.

 

➜ Whether a share could start a consolidation phase.

 

➜ Whether the upward momentum is slowing (if it's in a bullish phase).

 

➜ Whether buyers can look to 'phase in' to a position (if it's in a bearish phase).

 

➜ Whether a share lacks directional bias.  

 

I will admit that I did not discuss Bidvest at or near the recent lows, however, the share was included in the daily publications of the Tactical Trading Guide, which does provide a reading for each share across 3 time frames.

 

Yesterday’s rally piqued my interest which naturally caused me to check whether the tool gave us a signal at or near the lows.

 

These were the key data points:

 

The share’s most recent lows were Thursday 08-February and Friday 09-February.

 

On 08-February, the share fell by 2.3%, with a large red candle reflecting the selling pressure.

 

On that day, what were the end of day readings for the various time frames?

 

SHORT TERM (1 to 10 days): “Aggressive selling recently, however the buy/long reward-to-risk may be attractive 

 

MEDIUM TERM (1 to 10 days): “The share has been sold aggressively. Look for a continued dip (decline) before a minor rebound

 

LONG TERM (1 to 10 days): “Broadly, a weak to sideways consolidation. The share has recently been sold (has come under selling pressure). Expect a small rebound

 

As we can see, the 3 time frames indicated that the there was strong potential for a rebound, which subsequently took place as the share rallied from R226 to R258 in under a month.

 

While this tool was not built with new-age technology (e.g. AI) and is not supported or maintained by modern computer code, it does remain an effective tool to help you gain insights into potential trading opportunities.

 

Below are the time-stamped readings followed by the share’s price chart.



 

For more examples on how this tool has helped clients gain insights, click on the following article which uses MTN, MNP, TBS, SBK, DSY, TKG, MTM, HAR, GFI, IMP as actual/real-time examples.

 


Lester Davids

Analyst: Unum Capital



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