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Basic Materials
Mondi Plc (MNP): Mondi Plc is a holding company that manufactures and distributes corrugated and flexible packaging, and uncoated fine paper.
The share price recently tested a key support level and rebounded strongly, closing above the 200-day simple moving average (SMA), an indication that bulls have regained control of the trend. Supporting this, the moving average convergence divergence (MACD) has formed a bullish crossover, confirming that upward momentum is gaining traction.
A potential Buy/Long idea can be initiated, with the target set at R314.67 and the stop loss set at R270.
Consumer Goods
Tiger Brands Ltd. (TBS): Tiger Brands Ltd. is one of the
largest businesses in South Africa, manufacturing branded food, home, and
personal care products. It primarily deals with grains,
consumer brands, home and personal care, exports and international markets.
The share price is currently testing a previous high as a new support level, reinforcing the potential for trend continuation. This price action is occurring above the 200-day SMA, which supports a bullish outlook. Additionally, the MACD has made a bullish crossover, indicating upward momentum is building.
A potential Buy/Long idea can be initiated, with the target set at R325.03 and the stop loss set at R285.08.
KAL Group Ltd. (KAL): Kal is in the business of retail and trade in agricultural, fuel and related retail markets.
The share price has made a bearish breakout from a rising wedge pattern, a classic trend reversal signal. This move is supported by a confirmed bearish crossunder on the MACD, while the price trading below the 200-day SMA reinforces that bears are firmly in control of the trend.
A speculative Sell/Short idea can be initiated, with the target set at R36.37 and the stop loss set at R44.09.
Consumer Staples
Boston Beer Co., Inc. (SAM): Boston Beer is in the production and sale of alcoholic beverages. Its brands include Truly Hard Seltzer, Twisted Tea, Samuel Adams, Angry Orchard, Hard Cider, and Dogfish Head Craft Brewery.
The stock price has confirmed a bullish breakout from a double bottom pattern, signalling a potential trend reversal. As confluence, the price closed above the upper Bollinger Band, reflecting strong upward momentum, while a bullish divergence on the relative strength indicator (RSI) earlier suggested that downward pressure was losing steam.
A potential Buy/Long idea can be initiated, with the target set at $245.93 and the stop loss set at $199.50.
Consumer Discretionary
Texas Roadhouse, Inc. (TXRH): Texas Roadhouse is a full-service, casual dining restaurant chain which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills.
The stock price tested the 200-day simple moving average (SMA) as dynamic support, forming a doji candlestick that reflected market indecision. However, a bullish crossover on the moving average convergence divergence (MACD) and the presence of a bullish candlestick signal a potential continuation of the upward trend.
A potential Buy/Long idea can be initiated, with the target set at $200 and the stop loss set at $180.52.
Health Care
Ligand Pharmaceuticals, Inc. (LGND): Ligand is a biopharmaceutical company that develops and acquires technologies that help pharmaceutical companies discover and develop medicines.
A bearish engulfing candlestick formed on 22 July following a strong upward move, signalling a potential short-term retracement before the broader uptrend resumes. As a confluence, the RSI has crossed below the overbought zone, indicating that downward momentum is currently taking hold.
A speculative Sell/Short idea can be initiated, with the target set at $114.04 and the stop loss set at $148.91.
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 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.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
