A chart from today's research. For more research insights, including trade ideas, get in touch today.
Wednesday 25-October-2023, 10h20
Nedbank Group (NED, 19730c). Monthly Chart.
The R200 level is one which I have highlighted in recent months as one to monitor for downside risk. This is a range that been supported by buyers for 19 months and is currently being breached. While this is well-known to market participants who keep a close eye on the share, the following additional points could provide further insight: (1) The 14-month RSI has shifted to below the 50 level. During previous cycles, crossed below the 50 level has been a negative technical development. At current levels, the 14-month RSI is at 47 (how will it close for the month? Let's monitor it.) (2) The MACD has developed a bearish cross with both the MACD 'Line' and 'Signal' gradually starting to turn lower. In the short term, oversold conditions may develop, opening up opportunities to buy for tactical rallies, however, market participants should keep the long term structure (monthly chart) in mind.
Wednesday 25-October-2023, 10h20
Nedbank Group (NED, 19730c). Monthly Chart.
The R200 level is one which I have highlighted in recent months as one to monitor for downside risk. This is a range that been supported by buyers for 19 months and is currently being breached. While this is well-known to market participants who keep a close eye on the share, the following additional points could provide further insight: (1) The 14-month RSI has shifted to below the 50 level. During previous cycles, crossed below the 50 level has been a negative technical development. At current levels, the 14-month RSI is at 47 (how will it close for the month? Let's monitor it.) (2) The MACD has developed a bearish cross with both the MACD 'Line' and 'Signal' gradually starting to turn lower. In the short term, oversold conditions may develop, opening up opportunities to buy for tactical rallies, however, market participants should keep the long term structure (monthly chart) in mind.