We may derive the following from the Weekly DSY chart:
1. Price has respected the weekly downtrend resistance.
2. It also has a longer term bullish trend intact.
3. Price is narrowing in.
4. I would wait for a confirmation of the trend direction before taking any new buys/sells. Patience is key here.
5. As always - maintain your risk.
Note: The views...
Discovery has had three failed attempts to break above the 200 day moving average which also coincides with the downward trend resistance line.
It does look to be forming a falling wedge which means we could see a potential move from current levels down to the support zone of around R138.00/R140.00. I am looking to short the next bounce (possibly around R151.00)....
Discovery (DSY) 15341c - approaching a level of interest/potential technical distribution zone. At an 18 price earnings ratio, the shares appear elevated however the growth profile would attract the rating. Recently shares have benefit as markets have ticked higher however we have seen director instituting protection structures to limit downside while capping...
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...
From fake moves comes fast moves. If this turns out to be a fake break we can expect to test of upper resistance. If this turns out to be a retest of current resistance line (previous support), we could reach some bottom targets.
After a Selling Climax (SC), Automatic Rally (AR) and Secondary Test (ST) in Phase A we have now seen the bottom of the range being tested a second time. This looks a lot like a potential spring in Phase C but we have not seen a good contraction in volume in Phase B so this still could just be a test of the TR. However, the result should be the same with a test of...
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.