Pre-Market
Sell/Short Idea
The price has started to reflect selling/distribution, and on this basis, I am publishing a SELL/SHORT trade alert. In addition, to the factors previously expressed (see further below in this page), other drivers for my view are as follows:
The governor of the South African Reserve Bank has poured cold water on an interest rate cut in September. According to DFA.co.za, Governor Lesetja Kganyago says the country has to sustain a low inflation rate for a period of time in order for the central bank to justify further interest rate cuts.
Technically, relative to the JSE Top 40 Index, the share is trading at an extended level vs the 200-day SMA.
I am expecting the share to attempt a rally, however, these spike could be used as an opportunity to initiate a position.
Preferred selling range: 23400c to 23700c
Stop-loss: 25100c
Target: 21100c
Time Frame: Medium Term
As always, traders could consider the following if/when the prices approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. Time Stop: Friday, 17 January 2025.
(Previous Post: 03 September)
Real-Time: 14h43
Ticker: MRP
MRP chart #1 (from Sunday report) - big level there at ~R237-ish.
MRP chart #2 (as of today's close) - it's been trading into R237 the past two days, with a long term rising wedge. In addition, a very interesting candle (bearish engulfing).
MRP chart #3 - price (last close R232) extended vs 200-day SMA (at R176). Trading 31% above it's 200-day SMA. By historical measures, that appears extended to the upside.
Previous Post (Caution, New Longs)
Ticker: MRP
Pre-Market
Yesterday evening's reading via the Tactical Trading Guide has caught my attention:
As noted at the start of this week.
Previous Post (Friday, 16 August)
Real-Time: 10h11
Entering An Overbought Range On It's Weekly Chart
Recently High Bullish Momentum However, Now Most Overbought Since May 2021
Lester Davids
Analyst: Unum Capital
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