We have completed 5 waves as you can see on the chart. Also,the DSI has reached 98 today, which is the highest in years. Finally, not shown is a RSI of 87 not seen, since the rise in 2016. Expect a pullback from 1373 to 1332 before heading up once again.
JSE:DSY has broken out of a symmetrical triangle in conjunction with a break out of a descending resistance line.
There is also a fractal that has formed on the top of the candle of the 30th of May.
If it breaks through this level of the fractal, I will consider a long position.
Similar to the MTN analysis (but on the opposite side), i want to use this as a good example of a bearish technical structure. It is clearly evident on the Discovery chart that every attempt to rally is met with a lower swing high & the counter is also able to post new swing lows on the downturns. I have only showed the 50 and 200 day moving averages for clarity...
I'm looking to buy DSY at around R144.00. It's holding up nicely at that horizontal support in a wedge pattern. the next move could likely be back towards the top of this wedge. Investors seem to have shrugged off their soft results and that bodes well for some bullish price action
JSE:DSY is trading at a strong support level at the moment.
It has bounced off of this level forming a hammer candle pattern which indicates a loss of bearish momentum and is a strong reversal signal.
Coupled with this, the stochastic has turned upwards which makes the signal stronger.
I have entered a long position, aiming for the next resistance level.
Discovery Ltd. is listed on the Johannesburg Stock Exchange and is an integrated financial services organisation, specialising in health insurance, life assurance, wellness, investments, savings products, short-term insurance and credit card products.
The corrective structure indicated above has targets of between 19000 and 21000 which is a long way...