End of week 12Apr19. Another great week for #Coronation & #Naspers. FTSE/JSE Allshare Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Afrox 22
Sun Intl 28
WBHO 30
Nampak 33
Capco 34
Overbought:
Coronation 81
Naspers 76
Kumba 72
MultiChoice 71
Santam 71
Spending a bit of time on Naspers. What a great year $JSENPN (YTD performance of 28% and 29.6% in USD) and for good reasons. First the unbundling of
MCG
(also in top5 overbought RSI list) and then the announcement of the separate Euronext Amsterdam listing of their internet interests (including
700
) outside of South Africa including its companies and investments in the online classifieds, food delivery, payments, retail, travel, education, and social and internet platforms sectors, among others.
One should just bear in mind that it’s been a great year in general for internet stocks, with US internet stocks growing 23% in USD YTD (
FDN
) & Chinese internet stocks up 31% (
KWEB
). The big question therefore is: “have we possibly done too much…too quickly?”
Naspers currently is trading extremely overbought according to its 14 day RSI. This is also the 3rd time since March 2018 where the share price found proper resistance at R3600, which in both 2 previous cases was followed by a strong pullback. Should we see a similar price movement, first resistance levels could be R3520, with a breakthrough these levels most probably eyeing a test of R3430. My next level to watch will then be set to the 50 day moving average at R3200, which is also the 0.5 Fibonacci retracement support level.
Should the trend remain the bull’s friend and properly break the R3600 levels, then my first target will be the high of 2018 at R3790 (also my stop loss if I was short), with next target then becoming that magical R4000 level.
The current Thomson Reuters consensus target price of R4202 correlates nicely with the all time high of R4143.
In short, I do see the value/upside of Naspers over the longer term, but feel it has been overdone over the shorter term. Both within Naspers as a company and the Global Internet Stocks.
Oversold:
Afrox 22
Sun Intl 28
WBHO 30
Nampak 33
Capco 34
Overbought:
Coronation 81
Naspers 76
Kumba 72
MultiChoice 71
Santam 71
Spending a bit of time on Naspers. What a great year $JSENPN (YTD performance of 28% and 29.6% in USD) and for good reasons. First the unbundling of
MCG
(also in top5 overbought RSI list) and then the announcement of the separate Euronext Amsterdam listing of their internet interests (including
700
) outside of South Africa including its companies and investments in the online classifieds, food delivery, payments, retail, travel, education, and social and internet platforms sectors, among others. One should just bear in mind that it’s been a great year in general for internet stocks, with US internet stocks growing 23% in USD YTD (
FDN
) & Chinese internet stocks up 31% (
KWEB
). The big question therefore is: “have we possibly done too much…too quickly?” Naspers currently is trading extremely overbought according to its 14 day RSI. This is also the 3rd time since March 2018 where the share price found proper resistance at R3600, which in both 2 previous cases was followed by a strong pullback. Should we see a similar price movement, first resistance levels could be R3520, with a breakthrough these levels most probably eyeing a test of R3430. My next level to watch will then be set to the 50 day moving average at R3200, which is also the 0.5 Fibonacci retracement support level.
Should the trend remain the bull’s friend and properly break the R3600 levels, then my first target will be the high of 2018 at R3790 (also my stop loss if I was short), with next target then becoming that magical R4000 level.
The current Thomson Reuters consensus target price of R4202 correlates nicely with the all time high of R4143.
In short, I do see the value/upside of Naspers over the longer term, but feel it has been overdone over the shorter term. Both within Naspers as a company and the Global Internet Stocks.