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Royal Merchant Bank About To Break?Royal Merchant Bank (RMB) Holdings is an investment company, with its main holding being a 34% interest in FirstRand Bank Limited, one of southern Africa’s premium banking groups. The group’s history can be traced back to the consolidation of Rand Consolidated Investments and Rand Merchant Bank in South Africa in 1987, giving the group a wide interest in the financial services sector. RMB Holdings shares were listed for sale on the Johannesburg Stock Exchange (JSE) in 1992 and the group currently trades under the ticker RMH, with a market cap of R78 billion. The group has a significant influence on FirstRand Bank (which has a market cap of R 300 billion) through non-executive representation on boards, in line with RMB’s decentralised management philosophy. FirstRand Bank currently has control of First National Bank, Wesbank, Royal Merchant Bank and Ashburton Investments. The group recently announced that it will expand its current single investment in FirstRand through the purchase of a 25% stake in leading South African property group Atterbury. Technicals This is a bullish corrective structure and is currently trading at the top of wave 4. Should the structure break to the upside now, there are good targets but the possibility of wave 5 to the bottom of the structure does exist. I will be watching lower time frames for an entry signal.
JSE:RMHLong
by Linton_White
History Often Repeats Itself. Down First, Then UpEstablished in 2001, Capitec has become South Africa’s fastest growing bank, and today has more than 7.3 million clients, 720 branches and over 11 000 employees. With shares listed for sale on the Johannesburg Stock Exchange (JSE) in 2002, the bank is renowned for its affordability and simplified model of banking, which has received superb buy in from clients of all income levels. Capitec already commands more than 20% of South Africa’s banking market share and has a market cap of almost R70 billion. Technicals I am expecting a repeat of the previous formation. All to often, support and resistance traders get caught buying when the highs break and selling when the lows break, only to watch the price turn and run against them. History often repeats itself and if you have a careful look at these two areas on the chart, you will see a lot of similarities. The structure that will form here is likely to break to the upside eventually but I expect a reversal soon for wave 3 before more upside will come.
JSE:CPIShort
by Linton_White
Remgro Double Top TargetRemgro Ltd. is an investment holding company established with effect from 1 April 2000, after the restructuring of the former Rembrandt Group Ltd. The Group's interests consist mainly of investments in consumer products; banking; healthcare; insurance; industrial; infrastructure as well as media and sport. The company's activities are concentrated mainly on the management of investments and the provision of support rather than on being involved in the day-to-day management of business units of investees. Subsidiaries not wholly owned include listed companies with independent boards of directors on which this company has non-executive representation. Non-subsidiary investments comprise both listed and unlisted companies not controlled by this company and which are mostly associated companies due to significant influence and board representation. Technicals This bullish correction has completed 5 waves which usually means there will be a break to the upside now. It's unusual but sometimes corrective structures form a 6th wave as well so I will still be careful of a reversal when price reaches the top of the structure. A break of the structure currently has a target exactly at the previous high. Smaller time frames will give an entry for the long. Happy trading! Linton
JSE:REMLong
by Linton_White
Discovery Correction With Big TargetsDiscovery 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. Technicals The corrective structure indicated above has targets of between 19000 and 21000 which is a long way up. We are in wave 3 of a possible 5 of the correction. I will be looking for wave 3 to break the low of wave 1 before looking for reversal signs to enter the long. Happy trading! Linton
JSE:DSYLong
by Linton_White
Wave 5 Up or Break Down for Nedbank?Nedbank Group is one of SA’s four largest banking groups by assets and deposits, with Nedbank Ltd. being its principal banking subsidiary. Nedbank Group is a JSE Top 40 company with its ordinary shares listed on the JSE since 1969 and on the Namibian Stock Exchange since 2007. The group's market capitalisation was R128 billion at 31 December 2017. Old Mutual plc is Nedbank Group's majority shareholder, with a 54.05% ownership of the group. The group provides a wide range of wholesale and retail banking services and a growing insurance, asset management and wealth management offering through four main business operations, namely Nedbank Corporate and Investment Banking, Nedbank Retail and Business Banking, Nedbank Wealth and Rest of Africa. Technicals This is a bearish structure formation so ultimately I expect a break to the downside. AS things stand now, I am expecting wave 5 to complete before the downside will occur. Price broke above the orange trend line indicated on the chart which leads me to believe that wave 5 is likely. There is however a possibility that a larger correction will form so be weary of reversal signs.
JSE:NED
by Linton_White
Mondi Still Has More Downside To ComeMondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything Mondi does. In 2017, Mondi had revenues of EUR7.10 billion and underlying EBITDA of EUR1.44 billion. Mondi has a dual listed company structure, with a primary listing on the JSE Ltd. for Mondi Ltd. under the ticker MND, and a premium listing on the London Stock Exchange for Mondi plc, under the ticker MNDI. Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007. Technicals The structure indicated on the chart above has broken to the downside. I expect further downside with possible reversal points at the 38.2%, 50% and 61.8% Fib retracement levels. I will be looking at lower time frames for a confirmation structure in order to enter the short. Happy trading! Linton
JSE:MNPShort
by Linton_White