Looking at the local market today as there might be some opportunities that might unfold over the week. The companies that I have identified span across three sectors which include mining, financial and retail.
Mining: South32 Limited (S32)
South32 Limited might be setting up for a reversal from the downtrend we have seen from September 2018. Price is currently trading above the 50-day Simple moving average and we can see a triangle pattern forming. I will wait for a daily close above 3482c per share level before I entre the trade with first target price 3859c per share.
Source – Bloomberg
Financial: Sanlam Limited (SLM)
The price action has been testing the 8140c per share level over the last 9 months and has finally broken through. I will wait for a daily close above the 8333c per share level before I look to enter the trade. Take note that the price action is trading well above the 50 day Simple Moving Average (SMA) and might move lower for a retest in the short term.
Source – Bloomberg
Retail: Compagnie Financiere Richemont SA (CFR)
The price action in Richemont have been trading in a consolidation phase after the major selloff we have seen over the last couple of months. Richemont has some fundamental aspects to be taken aware off before entering the trade. I will be looking for a daily close above the consolidation at 9680c per share to enter the trade with a wider stop loss in play at 9088c per share.
Source – Bloomberg
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