JSE & NYSE Shares Analysis | 14 - 18 October
JSE SHARES
Financials
Absa Group Ltd. (ABG): Absa Group Ltd. offers financial services. It operates through product solutions, everyday banking, corporate and investment banking, and Barclay's Separation.
The share price is trading in an ascending channel pattern and last tested the lower bounds at the R147.00 region. The price tested the 50-day simple moving average (SMA) at the R166.50 level and closed above, signalling a continuation of the trend. The moving average convergence divergence (MACD) is yet to confirm a bullish crossover.
A potential Buy/Long idea can be initiated with the take profit (TP) set at R161.28 and the stop loss (SL) set at R188.92.
Basic Materials
DRDGOLD Ltd. (DRD): DRDGOLD Ltd. is in the retreatment of surface gold business, in the Johannesburg area. It deals with both the extraction and processing of gold.
A Bollinger Bands (BB) bullish breakout has been confirmed. Bollinger Bands are technical indicators that measure volatility and potential price extremes. They consist of three lines: a middle 20-SMA, an upper and lower band. By observing the price in relation to these bands, traders can identify potential buy opportunities when the price closes above the upper band. As confluence, the price is trading above the 200-day SMA, signalling that the bulls are in charge of the trend.
A potential Buy/Long can be initiated with the TP set at R20.69 and the SL set at R17.17.
Basic Materials
Mondi Plc (MNP): Mondi Plc is a holding company that manufactures and distributes corrugated and flexible packaging, and uncoated fine paper.
The share price has been trading in a falling wedge. It broke out of the pattern on Wednesday, confirming a potential downtrend reversal. The MACD has made a bullish crossover, signalling momentum to the upside.
A potential Buy/Long idea can be initiated with the take profit (TP) set at R363.85 and the stop loss (SL) set at R317.83.
US STOCKS
Consumer Discretionary
Domino's Pizza, Inc. (DPZ): Domino's Pizza Inc. manages a network of company- and franchise-owned pizza stores.
A double bottom pattern is potentially unfolding, with the neckline at $439.26 and the double bottoms trading at $397.77. The relative strength indicator (RSI) has a bullish divergence, suggesting downward momentum is fading and favouring upward momentum.
A speculative Buy/Long can be initiated with the take profit (TP) set at $474.09 and the stop loss (SL) set at $416.45.
Financials
U.S. Bancorp (USB): U.S. Bancorp is a bank holding company that offers financial services including lending & depository services, cash management, foreign exchange and trust & investment management.
The share price has been trading in a falling wedge. The share price broke out of the pattern on Friday, confirming a potential downtrend reversal. As confluence, the price is trading above the 200-day simple moving average (SMA), suggesting bulls are still in charge of the trend and the price closed above the 50-day SMA, suggesting trend continuation. The moving average convergence divergence (MACD) has made a bullish crossover, signalling momentum to the upside.
A speculative Buy/Long can be initiated with the TP set at $49.07 and the SL set at $44.43.
Industrials
J.B. Hunt Transport Services, Inc. (JBHT): J.B. Hunt Transport Services provides logistics solutions.
The price has been trading in an ascending channel and recently tested the lower bound of the channel at $162.37. The idea remains risky as the price trades below the 200-day simple moving average, meaning it is going against the trend direction. However, the MACD is yet to confirm momentum to the upside.
A potential Buy/Long can be initiated with the TP set at $182.63 and the SL set at $162.93.
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