Basic Materials
DRDGOLD Ltd. (DRD): DRDGOLD Ltd. is in the re-treatment of surface gold business in the Johannesburg area. It deals with both the extraction and processing of gold.
The share price is trading within an ascending channel and recently tested the lower bounds of the channel at the R16.60 mark. Additionally, the price has tested the 200-day simple moving average (SMA), which acts as a dynamic support level. As further confluence, the moving average convergence divergence (MACD) is yet to confirm a bullish crossover.
A potential Buy/Long idea can be initiated when the price closes above the R16.90 mark with the take profit (TP) set at R19.00 and the stop loss (SL) set at R15.64.
Industrials
Afrimat Ltd. (AFT): Afrimat Ltd. is in the business of open pit mining, processing, and supplying industrial minerals and materials. It operates through construction materials, industrial minerals, bulk commodities, future materials, and metals.
The share price has broken below the ascending channel pattern and recently retested the lower bounds of the channel at the R69 mark. The Bollinger Bands indicated a false bullish breakout, suggesting a potential retracement. Additionally, the relative strength indicator (RSI) has crossed below the overbought region, supporting downward momentum.
A speculative Sell/Short idea can be initiated, with the TP set at R63.73 and the SL set at R72.91.
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 has been trading within an ascending channel pattern and recently tested the upper bounds of the channel before closing below it at R199.50. The RSI is in overbought territory, indicating a potential shift in momentum to the downside
A speculative Sell/Short idea can be initiated, with the TP set at R180.34 and the SL set at R205.51.
Industrials
FedEx Corp. (FDX): FedEx Corp. is a holding company that offers transportation, e-commerce, business services, and business solutions.
The share price is trading within an ascending channel pattern but has not yet reached the upper boundary. It recently tested and closed above the 50-day simple moving average (SMA), suggesting the potential for continued upward momentum. However, the moving average convergence divergence (MACD) has yet to confirm a bullish crossover, leaving momentum unverified. On the 19th of December, the company will release its earnings report.
A potential Buy/Long idea can be initiated with the take profit (TP) set at $308.21 and the stop loss (SL) set at $271.32.
Consumer Discretionary
Domino's Pizza, Inc. (DPZ): Domino's Pizza Inc. manages a network of company- and franchise-owned pizza stores.
The share price has broken out of a rising wedge pattern. Furthermore, the price is trading below the 200-day SMA, indicating that the bears are in control of the trend. The MACD has formed a bearish crossunder, confirming momentum to the downside.
A speculative Sell/Short idea can be initiated, with the TP set at $413.52 and the SL set at R471.52.
Industrials
Equifax, Inc. (EFX): Equifax offers information solutions and human resources business process outsourcing services.
The share price is trading above the 200-day SMA, indicating that the bulls remain in control of the trend. Additionally, the price has closed above the 50-day SMA, reinforcing the trend continuation signal. The relative strength indicator (RSI) has yet to reach overbought territory, suggesting that upward momentum remains intact.
A potential Buy/Long idea can be initiated with the TP set at $300.23 and the SL set at $260.20.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets 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. BCS Markets 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 use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
