JSE & NYSE Shares Analysis 4 - 8 May

JSE SHARES

Basic Materials

Sappi Ltd. (SAP): Sappi is in the business of paper-based solutions. Its products include dissolving pulp, graphic papers, packaging and speciality papers, casting and release papers, and biomaterials.

The share price has tested the support level around R15.50, with buying interest emerging. This move is accompanied by an expansion of the Bollinger Bands (BB), indicating a pickup in volatility that could precede a directional move. Adding to the bullish case, the moving average convergence divergence (MACD) has formed a bullish divergence, suggesting that downward momentum is fading and upward momentum may be building.

A potential Buy/Long idea can be initiated, with the target set at R20.90 and stop loss at R14.50.  

Health Care

Aspen Pharmacare Holdings Ltd. (APN): Aspen manufactures and supplies branded and generic pharmaceutical products.

The share price recently tested the lower trendline of its ascending channel, along with the 50-day simple moving average (SMA) around R130, and has since rebounded higher. Importantly, this move is occurring above the 200-day SMA, reinforcing that the broader trend remains intact and bulls are still in control.

A potential Buy/Long idea can be initiated, with the target set at R156.57 and stop loss at R134.11.

Basic Materials

Tharisa Plc (THA): Tharisa is in the exploration, mining, processing, beneficiation, marketing, sales, and logistics of mineral properties.

A classic trend continuation setup is unfolding, with the share trading above the 200-day SMA, signalling that the broader uptrend remains intact. A decisive close above the 50-day SMA would confirm the continuation of the move. Adding to the bullish outlook, the MACD has completed a bullish crossover, indicating that upward momentum is building.

A potential Buy/Long idea can be initiated once the price closes above R26, with the target set at R31.93 and stop loss at R23.07.

US STOCKS

Industrials

Jacobs Solutions, Inc. (J): Jacobs is in the design and deployment of technology-centric solutions.

An inverse head and shoulders pattern is developing, with a close above the neckline at $131.56 set to confirm a bullish reversal. Supporting this setup, the moving average convergence divergence (MACD) is already trending higher, indicating that upward momentum is in place and there’s scope for further gains.

A potential Buy/Long idea can be initiated once the price closes above $131.56, with the target set at $142.72 and the stop loss set at $126.24.

Information Technology

Elastic NV (ESTC): Elastic is a data analytics company in the open-source search and analytics engine services business.

A falling wedge pattern has been confirmed with a close above the upper trendline around $50, signalling a potential bullish reversal. The Bollinger Bands have contracted, indicating that volatility has compressed and a strong move may be imminent. Adding to the bullish case, the MACD has formed a bullish divergence, suggesting that downward momentum is fading and upside pressure is building.

A potential Buy/Long idea can be initiated, with the target set at $73.74 and the stop loss set at $39.95.

Industrials

HEICO Corp. (HEI): HEICO is in the manufacturing of electronic equipment for the aviation, defence, space, medical, telecommunications, and electronics industries.

A falling wedge pattern is developing and would be confirmed with a close above $281, signalling a potential bullish reversal. In support of this setup, the MACD is showing bullish divergence, indicating that downside momentum is fading, although the bullish crossover is yet to be confirmed.

A potential Buy/Long idea can be initiated once the price closes above $281, with the target set at $253.58 and the stop loss set at $336.68.

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** This article was prepared by BROKSTOCK analyst Maboko Seabi