JSE & NYSE Shares Analysis | 16-20 September
JSE SHARES
Pulp and Paper
Sappi Ltd. (SAP): Sappi Ltd. is a holding company that provides wood-fiber-based solutions. Its products include dissolving pulp, speciality and packaging papers, printing and writing papers, and forestry.
The group’s share price is trading in an ascending channel, after testing the lower bounds of the channel at the R44.00 region. It is currently trading below the 200-day simple moving average (SMA) and a close above the SMA will confirm a bullish trend. The relative strength indicator (RSI) has signalled a bullish divergence at the lower bounds of the channel.
A potential Buy/Long idea can be initiated with a take profit (TP) set at R54.93 and the stop loss (SL) set at R44.75.
Mining
Impala Platinum Holdings Ltd. (IMP): Impala Platinum Holdings Ltd. mines, refines and markets platinum group metals (PGMs). It operates in South Africa and Zimbabwe.
On Friday, the share price closed above the 50-day and 200-day SMA, suggesting the trend has changed direction to bullish. The moving average divergence convergence (MACD) has signalled a bullish crossover, supporting momentum to the upside.
A potential Buy/Long idea can be initiated with the TP set at R112.47 and the SL at R73.68.
Pharmacy
Dis-Chem Pharmacies Ltd. (DCP): Dis-Chem Pharmacies Ltd. manufactures and retails pharmaceutical products. It also operates as a wholesaler through CJ wholesale.
A head and shoulders pattern is unfolding on the daily chart. The head is at R37.50 and the shoulders are in the R36.00 region. The overall trend is bullish, signalling a retracement, with the potential to treat the 200-day SMA as a dynamic support and resistance level.
A speculative Sell/Short idea can be initiated once price closes below the neckline at R34.60 with the TP set at R32.34 and the SL at R36.01.
US STOCKS
Media and Entertainment
Warner Bros. Discovery, Inc. (WBD): Warner Bros. Discovery, Inc. is a premier global media and entertainment company, with a portfolio of content, brands and franchises across television, film, streaming and gaming.
A double bottom pattern has unfolded with the bottoms in the $6.75 region. The pattern’s neckline is at $8.43 and the price closed Friday at $8.50. The moving average convergence divergence (MACD) has crossed over for potentially bullish momentum.
A speculative Buy/Long can be initiated with the take profit (TP) set at $10.25 and the stop loss (SL) set at $7.33.
Media and Entertainment
PENN Entertainment Inc. (PENN): PENN Entertainment Inc. owns and manages gambling and racing facilities, and video gaming terminal operations, with a focus on slot machine entertainment.
The share is trading in an ascending channel, after testing the lower bounds of the channel at the $17.28 region. On Friday, the price closed above the 200-day simple moving average (SMA), confirming a bullish trend. The MACD has signalled a bullish crossover.
A speculative Buy/Long can be initiated with the TP set at $23.02 and the SL set at $17.82.
Information Technology
Micron Technology Inc.(MU): Micron Technology, Inc. is in the business of innovative memory and storage solutions.
A falling wedge is a bullish chart pattern that occurs when an asset’s price moves in a downtrend but with a narrowing range, creating a wedge shape. This pattern indicates that the selling pressure is decreasing and a potential breakout to the upside could happen. The price has to close above the wedge. As confluence, the relative strength indicator has signalled a bullish divergence, supporting momentum to the upside
A speculative Buy/Long can be initiated when the price closes above the $95.00 mark with the TP set at $119.16 and the SL at $83.56.
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