US STOCKS
Overview: Amazon is a global e-commerce giant offering retail products, cloud computing (Amazon Web Services), and streaming services (Amazon Prime Video).
Strengths: Amazon is a leading online retailer which typically sees a significant uptick in sales during the holiday season
Challenges: Potential disruptions in the supply chain could impact timely deliveries, affecting customer satisfaction during this crucial festive season period. Amazon also faces global scrutiny, which might lead to regulatory changes impacting its business model.
Technical Performance: The share price has closed above August 2022’s high of $146.71 and the resistance level is at $146.57. If the price holds above the resistance level, investors could enter for further upside potential. More conservative investors should wait for the price to retrace and test the support level at $146.57. As a confluence of confirmation, the price is trading above the 200-day SMA.
Outlook: With its strong market position and diversified business segments, Amazon remains well-positioned for the holiday season.
Overview: Target operates as a general merchandise retailer offering a wide range of products across different categories, including apparel, home goods, electronics, and groceries.
Strengths: Target has successfully integrated its online and offline retail strategies, offering customers various shopping options. The company’s focus on exclusive partnerships and customer experience has enhanced its brand value.
Challenges: Big competition in the retail sector could impact financials, especially during promotional periods like the holidays. A slowdown in consumer spending, due to economic uncertainties, might also affect sales.
Technical Performance: Target, in the previous week, moved a solid 19.80%. The price is below the 200-day SMA and is testing for dynamic support/resistance levels. Investors should wait for it to close above the SMA or a death cross (50 SMA crosses above 200 SMA).
Outlook: Target's strategic ideas and customer focused approach position it favourably for the holiday season. However, investors should always be wary of competition and economic factors that could influence its performance.
Overview: Apple is a leading technology company known for its iPhones, iPads, Macs, wearables, and services like the App Store and Apple Music.
Strengths: Apple products, especially new releases, tend to be in high demand during the holiday season. Revenue from services like Apple Music and iCloud subscriptions has been steadily increasing.
Challenges: Apple heavily relies on a complex global supply chain, making it vulnerable to disruptions affecting product availability. The tech industry is highly competitive and rapid technological advancements could impact Apple's market position.
Technical Performance: The share price is testing the highest high reached, of $198.23. Investors should wait for the share to break the high, which will then become support for further growth.
Outlook: Apple's brand strength and product lineup usually attract a lot of consumers during the holiday season. However, supply chain challenges and competitive pressures should be monitored.
SA Shares
Overview: The Shoprite Group is one of Africa's largest retailers, operating across various brands and formats, including supermarkets and hypermarkets.
Strengths: The company has a big market share in South Africa's retail industry, catering to various income groups. It provides a wide range of products, including groceries, household items, and clothing.
Challenges: Shoprite’s performance is influenced by economic factors and a slowdown in consumer spending could affect sales. There is also competition from both local and international retailers that might affect profits.
Technical Performance: Since April of 2022 the share price has been reaching higher highs, signalling a steady move up. The price could potentially rise to R275.90.
Outlook: Shoprite might see increased sales during the festive season due to higher consumer spending on groceries and household items. However, economic conditions and competition need to be monitored.
Overview: Naspers is a multinational conglomerate with investments in internet and media companies, including a stake in Tencent Holdings.
Strengths: Naspers' stake in Tencent has historically been a key driver in its valuation and earnings. Besides Tencent, Naspers has investments in e-commerce giant Takealot.com, and over 80 others across more than 100 different markets.
Challenges: Naspers' performance heavily relies on Tencent's success, making it susceptible to changes in Tencent's business. The stock might be influenced by market sentiment and volatility in the technology sector.
Technical Performance: Naspers’ share price has been trading between a range of R3544.90 and R2965.43. Investors could look into the share once it closes above R3544.90. The next target for the share price will be R3813.55.
Outlook: Naspers' investments in online retailers, tech and media could benefit from increased consumer activity during the holiday season, but market volatility and the company’s reliance on Tencent should be considered.
- Standard Bank Group (SBK)
Overview: Standard Bank is a leading African financial institution, offering banking and financial services across various segments.
Strengths: Standard Bank has a strong footprint across Africa, providing a range of financial products and services, including retail, corporate and investment banking, as well as wealth management.
Challenges: Financial institutions are influenced by economic factors and regulatory changes, which might affect profitability. Fintech advancements and competition from both local and international banks could impact market share.
Technical Performance: The share price has been steadily making higher highs and higher lows. It has the potential to return 5.92% or R210.43, as it makes a new high. It is well above the 200-day SMA.
Outlook: Banks often benefit from increased consumer spending during the festive season, but economic conditions and competitive pressures should be monitored.
*Always perform your own research, including studying financial statements, market trends and potential risks before making any investment decisions.
Disclaimer:
Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROCKSTOCK 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.
