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Trading Foschini: Approaching Oversold / Partially Cover Short Positions

Writer's picture: Lester DavidsLester Davids

Trade TFG and other JSE Shares with Unum Capital.

To get started, email lester@unum.co.za


Sector warning on 07 January, with TFG declining from R172 to R138.

  • Now traders should consider partially covering short/sell positions.

  • The price action model points to to oversold conditions, potential for further decline, however, this may be followed by a base, then a rebound.




 

Previous Post (Sunday 26 January): Trading: TFG


  • Short sellers (traders position for a move lower) are benefitting from the share price decline.

  • TFG is down by 15% from R172, reaching a level just below R146 on Friday (trading update released).

  • If you are short (have been positioned for a price decline), then consider covering some that position).

  • The bearish move is in line with our view that the bullish momentum for the Consumer Discretionary sector is waning.


Current Model Reading:


Analyst's Price Action Model Reading
Analyst's Price Action Model Reading

 

Previous Post (07 January): JSE Consumer Discretionary: Relative To The Top 40, Bullish Momentum Is Waning


Note the bearish MACD crossover and histogram which previously warned around a pullback.

Equally-weighted index includes (TFG, MRP, TRU, WHL)


Lester Davids

Analyst: Unum Capital

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