Similar falling wedge pattern after the last ZAR crushing due to Nenegate (end 2016). Attempting to break long term trendline. RSI oversold. ZAR loves to trade at extremes, this looking like one on the overbought side.
After a lengthy period of consolidation, there seems to be a double bottom support of $1680 within a bull flag formation on the weekly. $1800 is a great are of interest and resistance. A break of $1800 could signal a breakout with a potential move back to $2000.
BTI seems to have bounced once again off the support line trend after a bit of a wobble given the concerns around menthol bans by the Biden administration in USA. This is bound to be a long protracted legal battle, in the interim, I really like this stable as she goes rand hedge offering a 8 %plus dividend yield.
Sibanye giving us another go to befriend this trend as it continues to be supported by an ascending trendline established since the Covid-19market crash in 2020. Break of trendline will invalidate share momentum and trend.
The ZAR has been extremely resilient after the Covid19 selloff earlier this year when we saw R19+ ( a lot can also be attributed to overall dollar weakness). Given we are back to levels pre-Covid19 with a poorer performing economy, higher unemployment and debt levels etc.. current levels look attractive long term to take USD/Offshore exposure.
ANG approaching a strong horizontal support level, from which it broke out earlier this year as the gold rush and tanking ZAR sent it soaring.
Back at this resistance turned support zone and ascending trendline, looks like the long term uptrend is intact and these levels could be a good accumulation/buying zone for the gold fans.
SSW is undergoing talks of M&A exploration in the gold space, which is perhaps why we saw such a steep sell off lately. Look to go long under R39 with a stop loss at R37. Potential targets are R42.5 and R46.5 for a more aggressive risk/reward setup
SGL has been trading off a supportive ascending trend line since Oct-2019. Looks like an opportunity to befriend the trend again with a target of R42. Break of trend line will invalidate this bullish short term price momentum.
A classic Head & Shoulder Formation with a neckline around R197. Should the weak consumer environment continue, expectations for much of the upside to be capped or priced in given recent decent set of results. A material break below the neckline, could initiate a move towards R182 support levels. A move above R206 potentially invalidates this setup
SOL seems to have bottomed and continues to consolidate under R300 progressively posting higher lows. Should the Lake Charles project finally become earnings accretive, there seems to be some value to unlock longer term. Such a positive catalyst could see us retest a previously well established support line (Suspect will be strong resistance)
CCO looks to have broken a long established downtrend, currently seems to be retesting this trend which could provide support. This area may provide a good entry point for a recovery story into the UK general elections (12 December) should we finally get some progress around Brexit
Not to mention, nice Rand Hedge !
Dcp is already trading at levels pre that shocker after hour trading update last Friday. Also facing significant horizontal and downward trend line resistance around the R24 area. Confirmation of a break above R25 will invalidate the downward trend in place and ultimately invalidate the short setup
The USD/ZAR seems to be trading off support and broken its short term downward trend. Confirmation of this breakout through lack of progress on Eskom reforms, all time high unemployment rates and potentially poor outcomes from the Medium term budget today and Moody's (1st Nov), could provide additional catalysts to see the USDZAR back above 15.
Trading near the upper bounds of a ascending channel after posting a solid set of results in a very dismal retail environment. With the good news priced in, potential to close the price gap and retest prior breakout level.