SUMMARY
My overall goal is to convey 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.
All trade insights and ideas are intended to prepare and inform the trader about potentially attractive reward-to-risk opportunities with the aim of helping the client generate cash flow as part of a broader portfolio.
My intention is to utilize my insights to assess the 'best probability' and consider the range of outcomes under the potential scenarios.
APPROACH
In order to prepare traders for potential trading opportunities, the majority of insights, data, ideas and analysis are at the close of trade or pre-market and represents a best probability plan and perspective. Where possible and applicable, I will convey information intraday.
While the research contains pre-market insights, my preference is for traders to respond to opportunities in real-time, using an opportunistic and flexible approach as levels highlighted in the report may subsequently be influenced by additional market data, news flow and changes in price action/structure. While I will do my best to provide as much information as possible, please note that due to time constraints and other considerations, it is not always possible that all market views and potential trading opportunities are documented and highlighted in the research report.
In addition, trading levels highlighted are subject to change based on the aforementioned while the research (including trade ideas) is not a comprehensive view of all market conditions or potential opportunities at the time of writing.
AIM
This research insights provided aims to be a reliable source for market information that provides the following:
Firstly, perspectives and data that help manage risk
Perspectives that lead to trade ideas
Data that leads to trade ideas
Direct trade ideas
All trade insights and ideas are intended to prepare and inform the trader about potentially attractive reward-to-risk opportunities with the aim of helping the client generate cash flow as part of a broader portfolio.
To accommodate a diverse audience, the analysis and information communicated considers multiple time frames (ultra short term, short term, medium term and long term) as well as various strategies however I do place emphasis on short to medium term active trading opportunities.
While I focus on short to medium term opportunities and time frames, I continue to hold long term charts in high regard. To me, monthly and weekly charts are more important than ever and will never become obsolete.
STRATEGY/EMPHASIS
Relevant Insights For Active Traders
Clear and to the point.
Price Action - A ‘Follow-The-Tape’ Approach
Chart Structure - High Probability Setups
Short Term Technical Ratings - Overbought, Oversold, Neutral etc.
Medium Term Regime - Bullish or Bearish Trend?
Candle Structure - Piercing Candles/Dark Could Covers/Hammers etc.
Trend Lines - Horizontal and Diagonal
Key Demand/Supply Zones
Relationship of Price vs Moving Averages
And More...
TOOLS
We have developed trading tools which is intended to help you, as a client, uncover potential opportunities. These tools also relay key market information that could contribute to your decision-making process.
POINTS TO NOTE
Potential buying or selling levels are ranges and not a specific trading level.
To the previous point, a share can trade lower than a suggested buying level or higher than a suggested selling level.
A company can report 'good' results however can still trade lower on the day. It is all about whether the results was above or below estimates or analyst expectations as well as the market's interpretation of a company's results/news.
The price action probabilities are based on several factors which may include: short term rating, medium term regime, momentum, support/resistance, candle structure, moving averages and standard deviation among others. These are short term views and may be in contrast to medium and long term outlooks which are based on the weekly and monthly charts. These scenarios are subject to change based on sentiment, subsequent price action and company specific or macro news flows.
Consumers of the research will have various trading time frames i.e.
Ultra short term, looking for a 1 to 2 day move,
Short Term looking to hold for 1 to 2 week move
Medium Term some are looking for a 1 to 2 month move.
To the previous point, when enquiring about a share, it would help me greatly if I know your time horizon i.e. are you short term, medium term or long term.
Compared to other global markets, the JSE is small however there will always be opportunities for those with an active trading approach.
For active trading clients, there are up to 80 shares that have sufficient liquidity.
Analyst Coverage:
JSE Large Caps
JSE Mid Caps (Selected)
International Large Caps
Global Indices
Currencies
Commodities
Lester Davids
Analyst: Unum Capital
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