Dear Trader
The recent rebound in equity markets has seen safe-haven assets such as the Yen and Gold take a back seat in favour of risk assets such as the equity market, which globally, has "caught a bid" from oversold levels. From a technical perspective, most major indices have broken below the their (psychological) 200-day moving averages and are making an attempt to regain this moving average, currently nearing the underside of this level.
From an event-risk perspective, the US Mid-Term Elections, the Federal Reserve Interest Rate decision as well as the continuation of the earnings season is sure to keep volatility elevated in the short term.
Based on this, I am looking a short term trading opportunity in Harmony Gold (as a hedge against volatility) who today delivered it's first quarter 2019 operational update which saw a 30-percent jump in quarterly total production (from 9,040 kg to 11,773 kg), boosted by its Hidden Valley and Moab Khotsong mines.
From a technical share chart perspective, Harmony's share price has declined from R31.50 to R25.25 over the last three weeks and is testing the horizontal support and the prior breakout level, which in my view, creates an opportunity to take a buy/long position in anticipation of a bullish reversal.
These are the trade levels:
Buy/Long HAR R25.41 (Current) or better
Stop-loss: R23.90
Take Profit Target: R27.70
The recent rebound in equity markets has seen safe-haven assets such as the Yen and Gold take a back seat in favour of risk assets such as the equity market, which globally, has "caught a bid" from oversold levels. From a technical perspective, most major indices have broken below the their (psychological) 200-day moving averages and are making an attempt to regain this moving average, currently nearing the underside of this level.
From an event-risk perspective, the US Mid-Term Elections, the Federal Reserve Interest Rate decision as well as the continuation of the earnings season is sure to keep volatility elevated in the short term.
Based on this, I am looking a short term trading opportunity in Harmony Gold (as a hedge against volatility) who today delivered it's first quarter 2019 operational update which saw a 30-percent jump in quarterly total production (from 9,040 kg to 11,773 kg), boosted by its Hidden Valley and Moab Khotsong mines.
From a technical share chart perspective, Harmony's share price has declined from R31.50 to R25.25 over the last three weeks and is testing the horizontal support and the prior breakout level, which in my view, creates an opportunity to take a buy/long position in anticipation of a bullish reversal.
These are the trade levels:
Buy/Long HAR R25.41 (Current) or better
Stop-loss: R23.90
Take Profit Target: R27.70