*Short Term Traders Only*
DSY has acted well, first on the long side from just above 13000c, followed by an exit at 15200c (see related).
Reviewing the daily chart, the 7-day RSI is 'NEAR OVERSOLD' and judging by previous readings, this may be an opportunity for short term traders to pick up some for a move to say, around 13300c.
Buy at current level, 12581c...
Seems like the 200-day acting as major support.
Furthermore, the price action corrected from the lower range of the linear regression channel. This increases the likelihood of a mean reversion trade.
Bullish MACD crossover supports the bullish trend direction.
Upside price momentum supports the bullish trend direction.
JSE:DSY found support on the 200 day exponential moving average. It's now back above the 50 day exponential moving average. At current price, it can be a swing trade with 1:2 risk to reward.
Discovery has been on a gradual uptrend since 2008 and seeing more volatility and trading activity around 2013. Since then it has only broken uptrend support line last year during the lockdown impact on the industry as a whole. The good news is it quickly recovered and went back above the support line and is currently sitting very comfortable.
However on the down...
Discovery moving within a rising channel and it is currently at support level of the channel at R131. We anticipate that support will hold and we will be expecting bulllish movement from that level with first target of R155.00
JSE:DSY is showing good upward momentum and is looking promising for a long position. After the EMA's crossed we have had 2 "red days" but is still showing upward momentum. I think we could see a move towards the 15000 resistance level.
Discovery
Account balance: R8013.80
Entry: R137.06
Stop loss: R123.60
Risk per share: -R13.46
Quantity: 12.1
Risk ZAR: -R162.87
Risk: -1.97%
There’s a bit of resistance on the stock around 14570c. Which happens to my last entry point. The stock tested the support of the 13400c - 15750c box. He the support quite well. If the stock close above the 14770...
Are you watching DSY? I am. I think it has some work to do from the falling wedge however if the trend line is breached on the upside, it may trigger a swing long.
This is one of a few shares I am watching. To find out more about our research, DM me today.
