JSE & NYSE Shares Analysis | 29 April - 2 May
JSE SHARES
Technology
Naspers Ltd. (NPN): Naspers Ltd. operates as an internet and media group. It is in the business of e-commerce, media, corporate social, and internet platforms.
The share price continues to trade within an ascending channel, with the potential to reach a new all-time high should it remain within the pattern. The channel’s upper boundary lies near the R5 300 level, which could act as the next target. However, traders and investors should exercise caution and confirm the price action using additional technical indicators.
Basic Materials
Impala Platinum Holdings Ltd. (IMP): Impala Platinum Holdings Ltd. mines, refines, and markets platinum group metals (PGMs). It operates in South Africa and Zimbabwe.
A double top pattern is forming, indicating a potential trend reversal. A break below the neckline at around R87 will confirm the pattern. Additionally, a bearish divergence on the moving average convergence divergence (MACD) suggests weakening upward momentum, favouring a possible shift to the downside.
A potential Buy/Long idea can be initiated when the price closes below the R87.22 mark, with the target set at R59.80 and the stop loss set at R100.04.
Technology
Karooooo Ltd. (KRO): Karooooo provides mobility data analytics solutions for the transportation industry.
The share price has closed above the 50-day simple moving average (SMA), signalling a potential continuation of the bullish trend. This follows the formation of a falling wedge pattern, with both lows testing the 200-day SMA, indicating that bulls remain in control of the broader trend.
A potential Buy/Long idea can be initiated with the target set at R949.29 and the stop loss set at R725.57.
US STOCKS
Health Care
AbbVie, Inc. (ABBV): AbbVie, Inc. is a research biopharmaceutical company that develops and sells pharmaceutical products. It focuses on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, dermatology, and oncology, including blood cancers, virology, hepatitis C virus (HCV), human immunodeficiency virus (HIV), and neurological disorders.
The share price recently tested the trendline near the $170 region and closed above the 200-day simple moving average (SMA) on Friday, reinforcing bullish control of the trend. This price action mirrors a previously observed pattern where the share tests or briefly dips below the lower Bollinger Band before rebounding off the trendline. Additionally, the moving average convergence divergence (MACD) has signalled a shift in momentum, favouring a potential move to the upside.
A potential Buy/Long idea can be initiated, with the target set at $218.43 and the stop loss set at $179.34.
Consumer Staples
Colgate-Palmolive Co. (CL): Colgate-Palmolive is in the manufacturing and distribution of consumer products.
The share price tested the 200-day SMA as resistance around the $95 level and subsequently moved lower. Recently, the price also closed below the 50-day SMA, reinforcing the bearish bias. As confluence, the relative strength indicator (RSI) has formed a bearish divergence across all three resistance tests, suggesting weakening upward momentum and a potential trend reversal.
ASell/Short idea can be initiated with the target set at $79.43 and the stop loss set at $96.70.
Communication Services
Groupon, Inc. (GRPN): Groupon is a global two-sided marketplace that connects consumers to merchants.
The price has been consolidating below the resistance level at $18.49, which was tested again on Friday before closing lower, a signal of potential downward movement. As confluence, the price touched the upper band of the Bollinger Bands, indicating a possible shift in momentum. Additionally, the RSI has formed a bearish divergence, further supporting the view that bullish momentum is weakening.
A speculative Sell/Short idea can be initiated with the target set at $13.48 and the stop loss set at $21.46.
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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