JSE & NYSE Shares Analysis 15 - 19 December

JSE SHARES

Consumer Services

Boxer Retail Ltd (BOX): Boxer owns a supermarket chain in Southern Africa. The firm offers affordable products and services to lower-to-middle-income urban, peri-urban, and rural South African and Eswatini communities.

The share price is trading above the 200-day simple moving average (SMA), indicating that the broader trend remains bullish. The contraction of the Bollinger Bands (BB) suggests that volatility has been compressed, and a stronger move may be imminent. This setup is supported by a moving average convergence divergence (MACD) bullish crossover, while a sustained close above the 50-day SMA would further confirm the case for continued upward momentum.

A potential Buy/Long idea can be initiated once the price closes above R74.20, with the target set at R79.99 and the stop loss set at R70.48.

Basic Materials

Sasol Ltd (SOL): Sasol is a chemical and energy company that sources, produces, and markets chemical and energy products.

A falling wedge pattern is taking shape, with the share price recently testing support around the R100 level. Importantly, the price remains above the 200-day SMA, indicating that the broader trend is still supportive. In addition, the MACD is on the verge of a bullish crossover, suggesting that downside momentum may be fading and increasing the likelihood of a move higher.

A potential Buy/Long idea can be initiated once the price closes above R105.23, with the target set at R123.71 and the stop loss set at R96.12.

Consumer Services

Woolworths Holdings Ltd (WHL): Woolworths is an investment company that provides retail and financial services. It operates in Woolworths Fashion, Beauty, and Home, Woolworths Food, Woolworths Financial Services, Woolworths Logistics, David Jones, and the Country Road Group.

A golden cross (GC) has already occurred, signalling a potential shift in the longer-term trend. Following this, the price pulled back to test the 200-day SMA as a dynamic support level and has since rebounded to close above the 50-day SMA. As further confirmation, the MACD is poised for a bullish crossover, suggesting that upward momentum is beginning to build again.

A potential Buy/Long idea can be initiated, with the target set at R59.15 and the stop loss set at R52.20.  

US STOCKS

Industrials

RB Global, Inc (RBA): RB Global is in the provision of value-added insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide.

A double bottom pattern has been confirmed with a decisive close above the neckline around the $102 level, signalling a potential trend reversal. A further close above the 200-day simple moving average (SMA), together with a breakout above the upper band of the expanding Bollinger Bands (BB), would reinforce the bullish case and confirm that upward momentum is strengthening, with bulls firmly in control of the trend.

A potential Buy/Long idea can be initiated once the price closes above the 200-day SMA, with the target set at $111.02 and the stop loss set at $101.27.

Consumer Discretionary

Monro Muffler Brake Inc (MNRO): Monro operates chain stores that provide automotive undercar repair and tyre services.

A rising wedge pattern is taking shape, which is typically a bearish formation. A decisive close below the lower trendline around $20 would confirm the pattern, especially after the week opened with a bearish engulfing candlestick. Adding to this, the relative strength indicator (RSI) has crossed down from overbought territory, signalling that upward momentum is fading and increasing the likelihood of downside pressure.

A speculative Sell/Short idea can be initiated once the price closes below $20, with the target set at $16.80 and the stop loss set at $21.82.

Technology

Cognex Corp (CGNX): Cognex provides machine vision products and solutions that improve efficiency and quality in a wide range of businesses across attractive industrial end markets.

A falling wedge pattern is developing, with the recent test of the lower trendline aligning with a successful test and close above the 200-day SMA. This confluence suggests strong underlying support. Adding to the bullish case, the RSI has formed a bullish divergence, indicating that downward momentum is weakening and increasing the probability of a potential upside move.

A potential Buy/Long idea can be initiated once the price closes above $37.50, with the target set at $46.85 and the stop loss set at $33.26.  

Disclaimer:
*Any opinions, views, analysis, or other information provided in this article is provided by BROKSTOCK SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BROKSTOCK SA does not warrant the correctness, accuracy, timeliness, reliability, or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions, and all decisions are made at your own risk. BROKSTOCK SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss, including, without limitation, any loss of profit which may arise directly or indirectly from the use of the market commentary. The content contained within the article is subject to change at any time without notice. BROKSTOCK SA is an authorised financial services provider - FSP No. 51404. T&Cs and Disclaimers are applicable: https://brokstock.co.za/
** This article was prepared by BROKSTOCK analyst Maboko Seabi