FTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Tongaat 12
Murray & Roberts 23
Brait SE 24
Discovery Ltd 26
Dis-Chem 26
Overbought:
Pioneer Foods 90
Zeder 80
Anheuser Busch InBev 76
Sibanye Gold 74
Clover 74
Once one of the top performers on the JSE, Discovery Ltd has been on a slippery downward slope for the past year. The recent break of the bottom of a major symmetrical triangle, does not look good for DSY at all. A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A Breakdown from the lower trendline indicates the start of a new bearish trend.
Both the 50-day and 200-day moving averages are also pointing downward, which clearly concur with the trend not looking healthy at all. The share price however does find itself in extreme oversold territory according to its 14-day RSI. DSY also experience extreme price underperformance against the FTSE/JSE All Share since the beginning of 2019.
Next support level should be around R124, with a break and close below these levels. Most probably looking to test the R109 levels.
Should DSY bounce off current levels and move above the R136 levels again, could see resistance at the 50-ay moving average at R144.
The current consensus target price (according to Thomson Reuters) of R185 now seems like a bit of “wishful thinking”, but then again, stranger things have happened before. Personally, I would do nothing for now and wait for confirmation of the trend.
Oversold:
Tongaat 12
Murray & Roberts 23
Brait SE 24
Discovery Ltd 26
Dis-Chem 26
Overbought:
Pioneer Foods 90
Zeder 80
Anheuser Busch InBev 76
Sibanye Gold 74
Clover 74
Once one of the top performers on the JSE, Discovery Ltd has been on a slippery downward slope for the past year. The recent break of the bottom of a major symmetrical triangle, does not look good for DSY at all. A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A Breakdown from the lower trendline indicates the start of a new bearish trend.
Both the 50-day and 200-day moving averages are also pointing downward, which clearly concur with the trend not looking healthy at all. The share price however does find itself in extreme oversold territory according to its 14-day RSI. DSY also experience extreme price underperformance against the FTSE/JSE All Share since the beginning of 2019.
Next support level should be around R124, with a break and close below these levels. Most probably looking to test the R109 levels.
Should DSY bounce off current levels and move above the R136 levels again, could see resistance at the 50-ay moving average at R144.
The current consensus target price (according to Thomson Reuters) of R185 now seems like a bit of “wishful thinking”, but then again, stranger things have happened before. Personally, I would do nothing for now and wait for confirmation of the trend.