JSE & NYSE Shares Analysis 1 - 5 September

JSE SHARES

Financials

Ninety One Ltd (NY1): Ninety One Ltd. is in the business of asset management services. It operates and invests globally, offering a range of active strategies to its global client base.

A double top pattern is unfolding, with two peaks formed and the neckline at the R43 region. The relative strength indicator (RSI) has been showing a bearish divergence, indicating fading upward momentum and supporting the case for potential downside movement.

A speculative Sell/Short idea can be initiated once the price closes below the neckline at R43.03, with the target set at R39.95 and the stop loss set at R44.91.

Financials

Sanlam Ltd (SLM): Sanlam offers financial solutions to private and institutional clients. This includes individual, group, and short-term insurance, personal finance services such as estate planning, trusts, wills, personal loans, health management, savings, and linked products.

The share price is currently testing a major resistance level last seen a year ago, mirroring the same technical setup. The price tested the resistance and the upper Bollinger Band before closing below it at the R90 region. Similarly, the moving average convergence divergence (MACD) is displaying a bearish divergence, signalling fading upward momentum and a potential pickup in bearish pressure.

A speculative Sell/Short idea can be initiated, with the target set at R82.23 and the stop loss set at R92.97.

Financials

Pepkor Holdings Ltd (PPH): Pepkor Holdings Ltd. owns retail stores. It operates through clothing and general merchandise, furniture, appliances and electronics, building materials, and fintech. 

The share price is trading within a falling wedge pattern, with a breakout above the upper trendline at the R25.50 region set to confirm a bullish reversal. The RSI is currently in oversold territory, signalling that upward momentum is imminent. However, the price remains below the 200-day simple moving average (SMA), indicating that bears are still in charge of the broader trend, and any upside could be a retracement within the prevailing downtrend.

A potential Buy/Long idea can be initiated with a close above R25.50, with the target set at R26.88 and the stop loss set at R24.78.

US STOCKS

Technology

Taiwan Semiconductor Manufacturing Co Ltd (TSM): Taiwan Semiconductor manufactures and sells integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products, information applications, wired and wireless communications systems products, and automotive and industrial equipment, including consumer electronics such as digital video compact disc players, digital televisions, game consoles, and digital cameras.

A double top pattern is unfolding at the all-time high of $248.28, with the neckline situated at $228.96. The price recently tested the lower Bollinger Band, rebounded to the midline, but failed to hold above it, signalling fading momentum. As confluence, the RSI has formed a bearish divergence from the all-time high, suggesting downside pressure is building, and a potential reversal could be confirmed if the neckline breaks.

A speculative Sell/Short idea can be initiated once the stock closes below the neckline, with the target set at $209.10 and the stop loss set at $241.90.

Information Technology

Wix.com Ltd (WIX): Wix operates a cloud-based website design and development platform. It offers web templates, editors, and builders, search engine optimisation tools, a logo maker, web hosting, and email marketing services.

This is a classic trend continuation setup, with the price testing and closing above the 50-day simple moving average (SMA) while remaining well above the 200-day SMA. The moving average convergence divergence (MACD) has confirmed a bullish crossover, reinforcing the case for sustained upward momentum.

A potential Buy/Long idea can be initiated, with the target set at $196.47 and the stop loss set at $110.02.

Industrials

Acuity Inc (AYI): Acuity is an industrial technology company that offers lighting and building management solutions and services.

The stock price is testing its all-time high from January 2025, but Thursday and Friday’s close below this level, coupled with a bearish engulfing candlestick, signals strong selling pressure at resistance. As confluence, the MACD is yet to confirm bearish momentum, suggesting caution before confirming a reversal. However, the overall trend remains bullish, as the stock continues to trade above the 200-day SMA, keeping the long-term bias in favour of the bulls.

A speculative Sell/Short idea can be initiated once the stock closes below the neckline, with the target set at $292.67 and the stop loss set at $348.81.

Disclaimer: 

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** This article was prepared by BROKSTOCK analyst Maboko Seabi