JSE & NYSE Shares Analysis | 3 - 7 February
JSE SHARES
Financials
Standard Bank Group Ltd. (SBK): Standard Bank Group Ltd. is a holding company, which is in the business of providing integrated financial and related solutions to clients.
A double bottom pattern is forming, with the neckline at R223.89 serving as the key confirmation level for a bullish trend continuation. The share is currently testing the 200-day simple moving average (SMA) but has closed just below it. A confirmed close above both the 200-day SMA and the neckline would signal a continuation of the bullish trend. Additionally, the relative strength index (RSI) has shown a bullish divergence, indicating that downward momentum is fading.
A Buy/Long idea can be initiated once the two conditions mentioned above are met, with the stop loss set at R210.35 and the target set at R244.67.
Financials
Remgro Ltd. (REM): Remgro is an investment holding company, which is in the investment business. It operates through the following divisions: healthcare, consumer products, financial services, infrastructure, diversified investment vehicles, media, portfolio investment, social impact investments, and central treasury.
A double bottom pattern is forming, with the neckline at R223.89 serving as the key confirmation level for a bullish trend continuation. The share is currently testing the 200-day SMA but has closed just below it. A confirmed close above both the 200-day SMA and the neckline would signal a continuation of the bullish trend. Additionally, the RSI has shown a bullish divergence, indicating that downward momentum is fading.
A potential Buy/Long can be initiated once the price closes above R145.71, with the target set at R162.08 and the stop loss set at R137.52.
Basic Materials
Exxaro Resources Ltd. (EXX): Exxaro Resources Ltd. is in the business of mineral exploration. It operates through coal, energy, ferrous metals, TiO2, and alkali chemicals.
A double bottom pattern is forming, with the neckline at R223.89 serving as the key confirmation level for a bullish trend continuation. The share is currently testing the 200-day SMA but has closed just below it. A confirmed close above both the 200-day SMA and the neckline would signal a continuation of the bullish trend. Additionally, the RSI has shown a bullish divergence, indicating that downward momentum is fading.
A speculative Short/Sell can be initiated once the price closes below R173.00, with the target set at R161.57 and stop loss set at R180.55.
US STOCKS
Industrials
Oshkosh Corp. (OSK): Oshkosh is an industrial company, which is in the design, development, and manufacturing of purpose-built vehicles and equipment.
The share price has broken above the upper boundary of the falling wedge pattern at $112, signalling a potential bullish breakout. Additionally, it is trading above the 200-day simple moving average (SMA), confirming that bulls are in control of the trend.
A potential Buy/Long idea can be initiated with the take profit (TP) set at $139.25 and the stop loss (SL) set at $105.30.
Technology
Applied Optoelectronics, Inc. (AAOI): Applied Optoelectronics designs and manufactures optical communications products. Its products include optical devices, such as laser diodes, photodiodes, related modules and circuitry, and equipment for applications in fiber-to-the-home, cable television, and point-to-point communications.
The share price has tested its previous high at $22.89, now acting as a support level. It remains above the 200-day SMA, indicating that a bullish trend is in play. However, the moving average convergence divergence (MACD) has yet to confirm a bullish crossover. Please note that on the 6th of February, the company will release its earnings report.
A potential Buy/Long idea can be initiated with the take profit (TP) set at $37.63 and the stop loss (SL) set at $23.22.
Consumer Discretionary
Lear Corp. (LEA): Lear engages in the design, manufacture, and supply of automotive seats, electrical distribution systems, and electronic modules, as well as related subsystems, components, and software.
The share price has been in a descending trend and has historically used the 50-day SMA as a dynamic support/resistance level. The overall trend remains bearish, with the price trading below the 200-day SMA. Meanwhile, the MACD has yet to confirm a bearish crossunder. Take note that on the 6th of February, the company will release its earnings report.
A speculative Sell/Short idea can be initiated, with the TP set at $85.61 and the SL set at $99.87.
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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