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Writer's pictureLester Davids

Research: Insights & Opportunities - Wednesday, 20 March 2024

Updated: Mar 20

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Lester Davids

Analyst: Unum Capital

 

Good day. Thank you for taking the time to visit this page. My overall goal is to provide you with leading, high quality information by conveying my best interpretation of the most relevant market information in order for you, as a client to: (1) understand the potential opportunities and manage the potential risks and (2) make informed decisions around trading opportunities. To read my full research philosophy, please visit the following link: https://www.unum.capital/post/research-philosophy.


Wednesday 20 March 2024, 06h30 | Technical Summary: Mid & Large Caps, as of yesterday's close.



Wednesday 20 March 2024, 06h30  | JSE Relative Sector Status and Change, as of yesterday’s close (Sector Rating Change Relative To The Top 40 Index)



Wednesday 20 March 2024, 06h30  | JSE Relative Sector Ratings, as of yesterday’s close (Sector Rating Relative To The Top 40 Index)





Wednesday 20 March 2024, 06h30 | Horizon Kinetics Inflation Expectations ETF (INFL) | With both Oil and Gasoline prices having risen, this ETF may be setting up for further gains as it emerges to the upside of a long term consolidation pattern.



Wednesday 20 March 2024, 06h30 | Offshore Coal Stocks: Arch Resources (ARCH) and Peabody Energy (BTU) | Both of these shares haven’t done anything for many months - I like that. If there’s consecutive days of positive candles then that should give me an indication that the consolidation is nearing it’s end and that an upward trend may be continuing. The charts below isn't anything fancy, ....it's merely just to highlight the current consolidating structure.



Wednesday 20 March 2024, 06h30 | Price Action In Property | RDF Redefine: During yesterday’s trading session I noticed that RDF was trading at the lows of the day, with my initial thought being that the market is possibly becoming concerned about potential exposure to Pick n Pay (and related matters). By the close of trade, the price action had improved, with the close at the mid-point of the day’s trading range. Out of the last six trading sessions, four reflects indecision. Here I am monitoring for weakness below 407c as a clue that sellers are looking to take control. This may be determined in the days ahead.



Wednesday 20 March 2024, 06h30 | Price Action In Property | GRT Growthpoint: Similar to RDF above, the price action has been deteriorating….notice the continuous trading action on the 50-day EMA? Here, we could see 50-EMA support being breached and then turn into resistance.



Wednesday 20 March 2024, 06h30 | ANG Anglogold Ashanti | This year’s highest en- of-day close for the share was on Monday 11 March at 42373c. At the end of that trading day, the Tactical Trading Guide gave you the following reading: “Strong upside move but momentum is slowing, with sellers becoming active”. During the next trading session, the share was lower by 4.28% and has since declined further, testing a low of 38239c during yesterday’s session. Below is the updated chart as of yesterday’s close, shown with the reading on the day which the share peak. Below the chart is yesterday’s end of day reading from the Tactical Trading Guide. For long re-entries, the previous breakout level at the 50-day EMA is a confluence zone. As you’ll note the medium term time frame (2 to 4 weeks) states that traders could watch the 50-day EMA as a range for a rebound buy/long. For active traders, there are plenty of opportunities.



Wednesday 20 March 2024, 06h30 | TGA Thungela Resources | In recent weeks I have discussed TGA from two angles: (1) The positive candle structure and the readings via the Tactical Trading Guide (see original chart below) and (2) the ‘Distance Divergence’ (see original chart below). The group has since announced that it will be paying a special dividend. In addition, the share has risen from R106 to R115 (R120 at the highs). Well done to those who bought.  




Wednesday 20 March 2024, 06h30 | Candlestick Formations form part of technical price charts, which are are used by market participants to interpret current demand-supply dynamics, potential price trends as well as form decisions from these inferences. The tables below highlight the following: (1) The share code (2) the candle's 'change from open’ (over 1 session) i.e. from the start of the first hour of the trading day to the end of the last hour of the trading day'. This is used to determine the strength/weakness of the candle formation i.e. the greater (+) the percentage, the stronger the candle formation and the weaker (-) the percentage, the weaker the candle formation and (3) the share's short term technical rating i.e. which phase the share is in over a 7 day period.







 

Wednesday 20 March 2024, 06h30 | Tactical Trading Guide (Share Commentary on Largest 60 Shares By Market Cap): Technology + Proprietary Insights has helped to develop automated tools and strategies that are used to identify potential trading opportunities as well as highlight potentially significant technical developments across various time frames. This page highlights readings from our Tactical Trading Guide (Price Action Tool) which is also available as a live tool via the telegram group. The tool provides automated price analysis of over 90 JSE-listed equities across 17 sectors and across 3 time frames: short (short term), medium (medium term) and long (long term). Readings are subject to change, based on the development of the subsequent price action. Click here to access the data Tactical Trading Guide.


3 Trading Tips



Lester Davids

Analyst: Unum Capital


 

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