JSE & NYSE Shares Analysis | 2-6 September
JSE SHARES
Mining
Kumba Iron Ore Ltd. (KIO): Kumba Iron Ore Ltd. is in the business of extracting, producing, and selling iron ore.
The share price is currently trading at the lows of September 2022 at R349.67 which is the support level. The relative strength indicator (RSI) is in overbought territory, suggesting a break from downward momentum, making upward momentum imminent.
A potential Buy/Long idea can be initiated with a take profit (TP) set at R440.51 and the stop loss (SL) set at R319.39.
Process Industries
Mondi Plc (MNP): Mondi Plc is a holding company which manufactures and distributes packaging and paper products. It operates through the following packaging: corrugated packaging, flexible packaging and uncoated fine paper.
The share price has tested the 200-day simple moving average (SMA) and has historically been a dynamic support/resistance level. The moving average divergence convergence (MACD) has signalled a bullish crossover, suggesting momentum to the upside.
A speculative Sell/Short idea can be initiated with a take profit (TP) set at R373.59 and the stop loss (SL) set at R331.45.
Finance
JSE Ltd. (JSE): JSE Ltd. operates as a self-regulatory, multi-asset class stock exchange. The firm offers liquidity for tradable products, as well as post-trade, technology, and information services. It also provides primary market, secondary market and post-trade services.
The share price has tested the resistance level at R120.99 and has since retraced. As confluence, the moving average convergence divergence (MACD) has a bearish divergence unfolding, signalling that the upward momentum is fading and favouring downward momentum.
A speculative Sell/Short idea can be initiated with a take profit (TP) set at R101.55 and the stop loss (SL) set at R125.38.
US STOCKS
Information Technology
CDW Corp. (CDW): CDW Corp. is in the business of information technology solutions to businesses, government, education, and healthcare customers.
A falling wedge has formed and a bullish continuation is yet to be confirmed, indicating a potential upward price movement. The share price has been trading below the 200-day simple moving average (SMA), suggesting the bears are in charge of the trend. A close above the falling wedge pattern and the 200-day SMA will confirm the direction of the share price.
A speculative Buy/Long can be initiated once the two conditions are met with a take profit (TP) set at $251.39 and the stop loss (SL) set at $221.78.
Industrials
Eaton Corp. Plc. (ETN): Eaton Corp. Plc is a power management company, which provides energy-efficient solutions for electrical, hydraulic and mechanical power.
The share price has retraced to test the 200-day simple moving average (SMA). On Friday, the share price closed above the 50 SMA, suggesting trend continuation to the upside. Momentum is in an upward direction.
A speculative Buy/Long can be initiated, with a take profit (TP) set at $339.46 and the stop loss (SL) set at $291.16.
Information Technology
Cadence Design Systems, Inc. (CDNS): Cadence Design Systems, Inc. is in the design and development of integrated circuits and electronic devices.
A double top pattern has unfolded with the peaks in the $327 region, and the share price has closed below the neck line at $268.96, suggesting there is a trend reversal. As confluence, the 50-day simple moving average (SMA) has crossed under the 200-day SMA, signalling the death cross (DC).
A speculative sell/short idea can be initiated with a take profit (TP) set at $246.79 and the stop loss (SL) set at $279.95.
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