I think the chart speaks for itself, but this looks like a short squeeze and a bit of an exhaustion (shorts taken to the cleaners).
If the history of this chart is anything to go by, i would expect a reversion to the mean so i'll be looking to short this 80 level for a pullback into the mid 60's
Some real meaningful progression for the bull case in US small cap stocks.
50 dma > 200dma
Price has cleared the critical resistance level between 187-188.
Price has some short term resistance at the 38.2% fib retracement here, but it looks like we should progress to the next resistance level at the 50% fib retracement at 200.
Chart is showing a clear formation...
Omnia seems to be consolidating in a healthy fashion in the form of a triangle continuation pattern. Good chance in this resolving higher and your stops can be pretty tight on this. Triangle breakout could see it move to approx R95 so not a bad risk reward trade here.
Since the highs in March 2022, Angloplat has corrected almost 50%. I am starting to become interested in this chart on a medium term basis for the following reasons:
(1) Supported off 61.8% fib from Mar 22 and Mar 20 Highs and lows
(2) Rising channel support
(3) Has tended to consolidate under the 200WMA before reversing on a weekly time frame
(4) 200wma still...
Keep an eye on Palladium here... looks to be consolidating in a neat bullish falling wedge formation. More importantly, the RSI is making a series of higher highs (divergency) which is warning of a rally to come...
Might be worth looking at a couple of the palladium/platinum plays... Sibanye, Impala, AngloPlat, Northams etc which would be beneficiaries if this plays out
Keep an eye on Retailers in the US. Fundamentally it doesn't feel right but technically its telling a different story. Nice consolidation off the 200 weekly ma since may Last year. Level is clear here. A convincing weekly break above $66.50 should see this move higher to at least a target of $77.50
R360.00 is clear support here... as highlighted in yellow circles, march saw similar action where the stock consolidated just under the 200wma before igniting a rally of some proportion. Are we going to see something similar here?
Nice bounce off the 200 weekly EMA for Goldfields (GFI:JSE) as gold price has seen a nice reversal midday. If the 200wema at R130 fails, we could be headed to R110-R115 which has some strong strong horizontal support. the anchored vwap from the sep18 lows also come in just under which should provide another level of support/
Scanned a couple of stocks on the JSE and it was tough to find many decent setups although Aspen is one that stood out for me on the LONG side.
3 reasons I think this setup is constructive and likely goes higher to at least R200
(1) Weekly price action has been making consecutive higher lows since bottoming out in August 2019. (showing relative strength in...
Level of support is very clear here. Stock trying to close back above the 200dma which would be a good start. Should market remains strong could see it move to short term targets of R92 - R93 and R103. With its exposure to the commodity space and precious metals/copper moving up.. should be a bit of a catalyst for Barloworld to start moving higher again.
Global Gold shares have started the year on the bang so i thought i'd look at some of the local counters on the JSE. Sibanye Stillwater has carved a lovely rounding bottom since May last year and it finally has broken above the horizontal resistance around the R50 area. This should move to approximately R63 which would be the target of the rounding bottom. You...
Hard to be bearish on global markets when probably the biggest proxy for growth is showing really strong technical action. Dr Copper has broken out its triangle which has kept price action constrained and under the 200dma for the better part of 2 months. It has now also broken above the 200day moving average with higher targets in play
If you believe in Dow Theory then the fact that transports have not been able to make a new high compared to the August Swing highs, should make you doubt the new highs seen in the industrials. Normally this is a sign of underlying weakness so the expectation would be for further weakness to come in general equities.
I did a clean chart on SPY as my original chart was quite cluttered but I think this gives a very clear view and why I thought this recent move higher into resistance was a very shortable area. There are 3 very important inflection points which 9 out of 10 times were going to get a reaction. These all come into play between 402-410 on the SPY
1) Orange line which...