JSE & NYSE Shares Analysis 25 - 29 May

JSE SHARES

Consumer Services

Dis-Chem Pharmacies Ltd. (DCP): Dis-Chem manufactures and retails pharmaceutical products.

The share price has closed above the upper Bollinger Band, signalling strong upward momentum and increased buying pressure. This bullish outlook is further reinforced by the price trading above the 200-day simple moving average (SMA), confirming that the broader trend remains on the upside. Adding to the positive setup, the moving average convergence divergence (MACD) has completed a bullish crossover, indicating strengthening upward momentum.

A potential Buy/Long idea can be initiated, with the target set at R40.67 and stop loss at R35.88.  

Basic Materials

Mondi Plc (MNP): Mondi is in the business of manufacturing and distributing packaging and paper products.

A falling wedge pattern is unfolding and would be confirmed with a decisive close above the R170 region, signalling a potential bullish reversal. Supporting this setup, the relative strength index (RSI) has formed a bullish divergence, indicating that downward momentum is fading and buying pressure may be starting to build.

A potential Buy/Long idea can be initiated once it closes above R170, with the target set at R195.38 and stop loss at R159.35. 

Financials

Momentum Group Ltd. (MTM): Momentum is in the business of insurance, asset management and financial services.

A head and shoulders pattern is unfolding, with a decisive close below both the neckline and the 200-day SMA set to confirm the bearish reversal. Such a move would indicate that bears have regained control, and a broader change in trend direction to the downside may be underway.

A speculative Sell/Short idea can be initiated once it closes below R36.44, with the target set at R33.93 and stop loss at R37.48.

US STOCKS

Financials

Banco Macro SA (BMA): Banco is in the business of financial and banking services. It serves low and mid-income individuals and small and mid-sized companies.

A double bottom pattern has been confirmed, with the price also closing above the 200-day SMA after successfully testing it as a dynamic support level. This strengthens the bullish reversal outlook. Adding further confirmation, the MACD has completed a bullish crossover, signalling that upward momentum is building.

A potential Buy/Long idea can be initiated, with the target set at $88.36 and the stop loss set at $71.16.

Consumer Discretionary

Columbia Sportswear Co. (COLM): Columbia is in the business of designing, developing, marketing, and distributing outdoor, active, and lifestyle products, including apparel, footwear, accessories, and equipment.

The price is moving higher after successfully testing the lower boundary of its ascending channel, signalling that buyers continue to defend the trend. The bullish outlook is further reinforced by a recent golden cross and a close above the 50-day SMA, indicating strengthening upside momentum. Adding to this, the MACD has completed a bullish crossover, confirming that bullish momentum is building.

A potential Sell/Short idea can be initiated once it closes below $25.70, with the target set at $22.43 and the stop loss set at $27.19.

Industrials

Honeywell International, Inc. (HON): Honeywell is a software industrial company that offers industry-specific solutions to the aerospace and automotive industries.

The price holding above the 200-day SMA after a successful test suggests the long-term uptrend remains intact. A move back above the 50-day SMA reinforces improving medium-term momentum. Closing above the upper Bollinger Band reflects strong bullish pressure and expanding volatility, pointing to continued upside momentum, though short-term pullbacks remain possible.

A potential Buy/Long idea can be initiated, with the target set at $252.47 and the stop loss set at $214.85.

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