• Consumer Non-Durables
British American Tobacco plc (BTI): British American Tobacco plc is a holding company, which is in the manufacture and distribution of tobacco products. Its brands include Kent, Dunhill, Lucky Strike and Pall Mall. It operates in the United States, Asia-Pacific and Middle East, Americas, Sub-Saharan Africa, Europe and North Africa (ENA).
The share price has been in a descending parallel channel, the price has tested the lower bound of the channel at R534 level. The MACD is also forming a bullish divergence and it is yet to confirm the momentum to the upside. Investors should keep in mind that the share price is trading below the 200 day-SMA, suggesting that bears are still in charge of the overall trend direction.
A Long/Buy can be initiated once the MACD has crossed over for bullish, with target set at R594.95 and stop loss set at R521.77.
• Distribution
Barloworld Ltd (BAW): Barloworld Ltd. is a holding company, which is in the business of integrated rental, fleet management, product support, and logistics solutions of Industrial Equipment and Services, and Consumer Industries.
The share price has been in a descending parallel channel, it has approached the lower band of the channel at R72 level and made a 4.00% move to the upside. A pull back to the upside imminent, with the MACD crossing over for bullish divergence. The weakness in momentum to the downside is fading.
A Buy/Long can be initiated with target set at R80.79 and the stop loss set at R73.05.
• Finance
Absa Group Ltd.(ABG): Absa Group Ltd. is in the business of financial services. It operates through product solutions, everyday banking, corporate and investment banking and Barclay's Separation.
The share price on Wednesday, 13 December tested a major support level at R155.80. The price has historically moved back up after testing the level. As a confluence to confirm direction, the RSI has come out of overbought territory heading higher.
A Long/Buy can be initiated with target set at R167.85 and stop loss set at R152.59.
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 authorized financial services provider FSP No. 51404.
