JSE & NYSE Shares Analysis 30 March - 3 April

JSE SHARES

Basic Materials

BHP Group Ltd. (BHG): BHP is involved in the exploration, development, production and processing of iron ore, metallurgical coal, and copper.

A classic trend continuation setup is evident, with the price testing the 50-day simple moving average (SMA) and successfully closing back above it, while remaining firmly above the 200-day SMA. This alignment reinforces the strength of the prevailing uptrend. As additional confirmation, the moving average convergence divergence (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 R719.10 and stop loss at R537.50.  

Financials

Old Mutual Ltd. (OMU): Old Mutual is in the business of investment, savings, insurance and banking services.

The price tested the 200-day SMA as a dynamic support level, while touching the lower Bollinger Band before stabilising. This confluence suggests strong support at these levels. In addition, the relative strength index (RSI) has crossed above oversold territory, indicating that selling pressure is easing and upward momentum may be building.

A potential Buy/Long idea can be initiated, with the target set at R15.71 and stop loss at R12.92. 

Consumer Goods

AVI Ltd. (AVI): AVI is in the manufacture, processing, marketing, sale, and distribution of branded consumer products in the food, beverage, and fashion categories.

A falling wedge pattern is unfolding, with a close above R104.50 set to confirm a potential move higher. This follows a successful test of the 200-day SMA, which has acted as dynamic support. Adding to the bullish case, the MACD has completed a bullish crossover, signalling that upward momentum is building.

A potential Buy/Long idea can be initiated once the price closes above R104.50, with the target set at R114.71and stop loss at R99.46. 

US STOCKS

Utilities

PG&E Corp. (PCG): PG&E is a holding company that generates, transmits, and distributes electricity and natural gas to customers.

The stock price tested the 50-day simple moving average (SMA) and rebounded, closing higher, while continuing to trade above the 200-day SMA, reinforcing the strength of the broader uptrend. Adding to this, the moving average convergence divergence (MACD) is poised for a bullish crossover, suggesting that upward momentum may soon strengthen.

A potential Buy/Long idea can be initiated, with the target set at $19.25 and the stop loss set at $16.62.

Real Estate

Rayonier, Inc. (RYN): Rayonier is a real estate investment trust which invests in timberland.

A falling wedge pattern has developed after the price repeatedly failed to sustain a move below the lower Bollinger Band, indicating selling exhaustion. Adding to the bullish case, the MACD has completed a bullish crossover, suggesting that upward momentum is building.

A potential Buy/Long idea can be initiated, with the target set at $22.76 and the stop loss at $19.12.

Communication Services

Twilio, Inc. (TWLO): Twilio develops communications software, cloud-based platforms, and services.

A death cross is unfolding, with the 50-day SMA crossing below the 200-day SMA, signalling a potential trend shift to the downside. This bearish outlook is reinforced by the MACD, which has already turned negative, indicating that downward momentum is building.

A speculative Sell/Short idea can be initiated once the price closes below $119.50, with the target set at $95.42 and the stop loss set at $135.57.

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