JSE & NYSE Shares Analysis | 2 - 6 December
JSE SHARES
Telecommunications
MTN Group Ltd. (MTN): MTN Group Ltd. offers voice, data, fintech, digital, enterprise, wholesale, and application programming interface services. It operates in South Africa, Nigeria, Southern and East Africa, West and Central Africa, the Middle East, and North Africa.
The share price is trading within a falling wedge pattern and has recently tested its lower bounds. Adding to this confluence, the price has also tested a support level of R81.69. The moving average convergence divergence (MACD) has made a bullish crossover, indicating that upward momentum may be building.
A potential Buy/Long idea can be initiated once the price crosses above R83.00, with the take profit (TP) set at R91.83 and the stop loss (SL) set at R77.91.
Financials
Investec Ltd. (INL): Investec Ltd. is in the financial products and services business. The firm operates through wealth and investment; private and investment banking.
The share price is testing the lower bounds of an ascending channel pattern, and the 200-day simple moving average (SMA) around the R130.00 region. The MACD has yet to confirm a bullish crossover. Additionally, the share is scheduled to pay a R3.80 dividend on 31 December, with the ex-dividend date set for 11 December.
A potential Buy/Long idea can be initiated when the share price closes above R130.00, with the TP set at R142.43 and the SL set at R124.41.
Financials
Capitec Bank Holdings Ltd. (CPI): Capitec offers retail banking services through transactional banking and loan products such as term loans, credit facilities, and credit cards.
The share price has broken below the rising wedge pattern, signalling a potential trend reversal or retracement. Meanwhile, the MACD has been shown bullish divergence for the past five months, suggesting underlying upward momentum may still be present.
A speculative Sell/Short can be initiated with the TP set at R2983.01 and the SL set at R3426.78.
US STOCKS
Industrials
Canadian Pacific Kansas City Ltd. (CP): Canadian Pacific Kansas City is in the rail freight transportation services business.
The share price is trading within a descending pattern at R73.00. While the moving average convergence divergence (MACD) has made a bullish crossover, indicating potential upward momentum, the price remains below the 200-day simple moving average (SMA), suggesting that the overall trend is still bearish and the recent move may be a temporary retracement.
A potential Buy/Long idea can be initiated with the take profit (TP) set at $83.21 and the stop loss (SL) set at $73.47.
Consumer Discretionary
Best Buy Co. Inc. (BBY): Best Buy Co. Inc. is in the business of consumer technology products and services. It operates in all states, districts, and territories of the US, operating under various brand names including Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster, and Pacific Sales. Internationally it operates in Canada, Europe, China, Mexico, and Turkey.
The share price tested the 200-day SMA as a support level at $86.50 and closed above the 20-day SMA, signalling a continuation of the current trend. Adding to this confluence is the positive momentum from the bullish crossover in the MACD. Additionally, the share will pay a dividend of $0.94 per share, with the ex-dividend date set for 17 December and the payment date set for 7 January.
A potential Buy/Long idea can be initiated with the TP set at $99.02 and the SL set at $85.43.
Industrials
Alcoa Corp. (AA): Alcoa mines bauxite. The firm is also involved in the upstream aluminium industry. It operates through the Alumina and Aluminum divisions.
The share price is trading within an ascending pattern and has tested the upper bounds at $47.60. While the MACD has yet to make a bearish crossover, indicating potential downward momentum, the price remains above the 200-day SMA. This suggests the overall trend is bullish and the recent move could represent a potential retracement.
A speculative Sell/Short can be initiated with the TP set at $39.98 and the SL set at $49.63.
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
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