Spending a few minutes on one of the most oversold companies of the week (according to ), namely Discovery.
Technically it broke it's long-term started in October 2017. This was due to a very negative trading statement released yesterday, stating that Discovery's normalised undiluted headline per share for the six months ended 31 December 2018, is expected to decrease by approximately 16% to 366.6 cps (2017: 438.5 cps ) compared to the prior comparative period. They contributed this negative surprise on the spend on new businesses, which increased significantly over the period. They further stated that this will amount to approximately 21% of Group .
Last week (https://www.tradingview.com/chart/PIK/jl... I felt that Pik'nPay could be due for a bounce, but this week I'm worried about Discovery. Buying it at current levels could be like catching falling knifes, seeing that both the 50-day & 200-day moving averages are still very much pointing downwards. I would therefore hold off on buying too soon.
Next resistance should be around R139.79, with a break most probably testing the R127.76 levels.
Should the share recover and break R149.50 soon, then 50-day moving average at R156.42 should be next resistance.
Personally, I'm going to wait for this one to turn the tide a bit.