Resources
BHP, Rio Tinto (commodities): Highly exposed to the prices of miBHP, Rio Tinto (commodities): Highly exposed to the prices of minerals and metals (iron, copper, coal). Their performance is closely tied to global demand, particularly in China.
Rewards
Trading at 27.1% below our estimate of its fair value
Earnings are forecast to grow 4.76% per year
Risk Analysis
Profit margins (14.1%) are lower than last year (23.8%)
Dividend of 5.17% is not well covered by earnings
BHP, Rio Tinto (commodities): Highly exposed to the prices of miBHP, Rio Tinto (commodities): Highly exposed to the prices of minerals and metals (iron, copper, coal). Their performance is closely tied to global demand, particularly in China.
Rewards
Trading at 25.3% below estimate of its fair value
Earnings grew by 25.5% over the past year
Trading at good value compared to peers and industry
Analysts in good agreement that stock price will rise by 20.6%
Risk Analysis
Earnings are forecast to decline by an average of 0.06% per year for the next 3 years
Dividend of 6.75% is not well covered by free cash flows
$STXRES Satrix Resources getting hammered-16% and counting since 21 August. Frustrating sitting with any resource ETF's or shares right now. You need a lot of patience and a long term view, or this will be a money losing exercise almost all of the time. Always been a volatile sector of price takers. Feast or famine, and currently it looks more like famine than feasting.
Copper 50% retrace off high completeCopper retraced back to the 50%-61,7% Fibonacci retrace levels. An old trader I used to know called this the ambush zone, meaning it's a popular zone for a bounce or a pullback, depending if you're working off a low or a high. Interesting area to watch. No position.
USOIL SHORT
The price may rise to $82 but could also fall to about $70.
101.9 million barrels of oil will be consumed worldwide per day.
By next year, the oil markets appear to be oversupplied.
Highlights
Lower Russian output and more demand brought on by China's reopening could help oil prices.
Low demand and a bleak macroeconomic outlook for China
When the Energy Information Administration releases its inventory figures on Wednesday, more oil-related information will be available.
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**First Scenario - Long:**
Initial Target: $80.90
Entry: $79.08
Stoploss: $77.47
**Second Scenario - Short:**
Initial Target: $74
Entry: $78.34
Stoploss: $79.2
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After a long wait, I am currently waiting for this pair to give me my confirmation for a Short position (Data)
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Take into consideration:
It appears that the market has settled in a range of $79.44 to $76.86, with the 7.68 retracement level above the latter being significant.
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NFA
DYOR
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Good Luck!
⚠️Caution: Just because I've set my buy and sell position Settings or drawn direction lines on my chart doesn't indicate I've opened a position or am obsessed with a particular bias. This is only a forecast; I don't trade when the price reaches my level; I have rules of engagement. Perhaps the most crucial element is 🆘RISK MANAGEMENT🆘.
Merafe Dividend messed up analysis to the upside of R2.00What a difference a dividend makes!
The payment went out on the 15 April 2024, and because there are derivatives that traders can trade off - the algorithm droped the share price quite significantly.
I don't think this company should be providing such high dividends if it wants growth in the share price, but hey I'm just the guy behind a computer.
So last time, we saw a Dividend release in September, it took 6 months for the share price to make it's way up and close the gap.
Now it is likely for the same thing to happen.
This is not a technical analysts haven type market because fundamentals trump the price action.
But overall, I guess shareholders are remotely happy for their income distribution and in the long run Merafe will one day hit R2.00 :D
Exxaro looks fantastic to R208.22! We recently saw it break out of the medium downtrend since January 20024.
The price broke above the W Formation's neckline and above the 20 and 200MA.
This states the medium term nature is HIGH probability for upside.
The concern is the price gapped up and now needs to fill.
SO I am patiently waiting for the Gap to close and then rebuy on the bounce of the retracement.
Target to R208.22.
Most outlandish target for Merafe yet - R1.72Rectangle formation has completed with Merafe.
There has been a strong bullish sense with the stock, where the price action has shot above the pattern and is showing upside and demand to come.
We are seeing other signs as well with optimism.
Price>20
Price>200
Target 1 will be at R1.72
UPDATE: Thungela continues it's land slide since the H&S break Unfortunately, the price did break below the H&S and Thungela showed a ton of supply and selling coming in.
This means, the target is still set to R91.93. The support at R121.50 was the last hope for the share to hold and bounce.
But now it's clear that this resource miner is in trouble.
Now let's cover the fundamentals.
Coal Prices Affecting Profit:
Thungela's profit dropped significantly due to weak coal prices. In a recent half-year report, their profit fell by 69%.
Earnings Forecast to Decline:
Analysts predict Thungela's earnings will decrease by an average of 64.3% per year over the next three years.
Dividend Instability:
The company's track record with dividends isn't very stable, which can unsettle investors.
Stock Performance:
Over the past year, Thungela's stock price decreased by 44.73%. In the last three months, it dropped by 27.43%, and in the last month, it fell by 15.66%.
Price Volatility:
Thungela's stock has shown high volatility, with an average weekly movement of 5.5%, which is higher than the industry average.
#BHG BHP - Previous resistance now support?This chart does not need much explanation. Previous resistance turning into support = change of polarity. Watch BHG here as a reversal off this R566-R568 level could turn out to be a nice buy with the opportunity to use a fairly tight stop loss. This is where we also find the 61.8 fib retracement of the most recent swing highs and lows.
PPC major Cup and Handle with target to R4.40PPC hit our initial target at R3.50.
It then confirmed a breach above the neckline from the larger cup and handle formed since March 2023...
Now there is a slight consolidation before the upside to continue.
We see the moving averages are perfectly aligned where 7>21>200
And the RSI>50 and making higher lows.
New target will be at R4.40
UPDATE Thungela continues its downside to R88.70 with a new H&SLarge H&S formed since since May 2022. The price broke below the neckline and since then it's been on a one way trajectory.
That was until it reached R123.96 in May 2023... THe price since then has consolidated in a sideways manner and has formed yet another Head and Shoulders.
With the price breaking below its neckline, we are seeing further signs of downside to come.
And the target remains EXACTLY at R88.70.
ABOUT THE COMPANY:
Company Background:
Thungela Resources Limited is a South African coal mining company.
Spin-Off from Anglo American:
Thungela was spun off from Anglo American Plc, a global mining company, in June 2021.
Thungela primarily focuses on coal mining operations.
The company's main products are related to coal production, including different grades of coal that are used for various purposes such as energy generation, industrial processes, and export.
UPDATE: Barloworld M Formations! Not one but TWO for the down! In May 2023, I wrote to you saying I epxect Barloworld to drop.
ANd if you had the patience and just invested in this short, would be paying nicely by now.
Not only because the price is down but also with the time held you could have made some interest income from the short.
Anyway, there is nothing more confirming than when you have a Bearish formation like the M Formation and then you have ANOTHER Double Top.
ANd since the price broke below the neckline, it's been carnage for Barloworld.
The target remains at R64.17. And if it breaks below, I'll write another trading analysis...
#STXRES #JSE - Resources bouncing off Long term levelsResource are very likely the place to be over the medium term. Satrix Resources which is a basket of the biggest resource stocks on the JSE is bouncing off a massive level of previous long term support which has now become support (Change of Polarity). This is a great area to accumulate for the long term in my opinion. Will be happy to review after a few months but for now 3x hold of support shows the bulls mean business.
Constituents below:
ibb.co
UPDATE: Sibanye is all but gold right now :( More downside Since the last update, Sibanye formed a major Inverse Cup and Handle.
The price broke below and has been coming down.
Just to make matter worse, another M formation formed in the interim, confirming it's strength to the downside.
200>21>7 - Bearish
RSI<50
Target remains at R16.89
Problem is most market makers don't even offer short CFDs and a script to follow this market, so we can only watch the analysis play out.
Exxaro showing a stronger buy signal to R226.76Initially, I wrote that we could expect a break to the downside where there'll be a better entry for a short.
But the entry price never struck and the price turned up intot he channel.
Price is now breaking above the down channel, indicating a chosen direction - Up.
Other signs show some upside
7>21
RSI>50 - Bullish
Target R226.76
WARNING
I'm not too convinced yet and will need a stronger breakout and maybe even for the price to move up, test the support then bounce giving a conservative entry.
Then we are talking.
Glencore showing strong W and ready to break up and out to R136Glencore showing a potential W Formation.
We need the price to break above the neckline before we get further traction up.
Other indicators show strong upside to come including...
7>21 - Bullish
price >200 - Bullish
RSI>50 HIgher lows.
Target 1 for the resource company is at R136.20
ABOUT THE COMPANY
Founding: Glencore was founded in 1974 by Marc Rich, a controversial financier and commodities trader.
Name Origin: The name Glencore was derived from the words "Global Energy Commodities Resources". It was chosen when the company was taken public in 1994 after Marc Rich sold his stake.
Commodities Trading: Glencore is one of the world's largest globally diversified natural resource companies. It's a major player in the production and marketing of over 60 commodities.
Glencore operates in over 35 countries and employs approximately 145,000 people.
Initial Public Offering (IPO): Glencore went public in 2011 on both the London and Hong Kong Stock Exchanges. IN 2013, it listed on the Johannesburg Stock Exchange (JSE) under the ticker "GLN".
Xstrata Merger: In 2013, Glencore completed a merger with Xstrata, a major global mining company, in a deal worth approximately $30 billion.
Anglo Plat showing strong upside with inv C7&H to R1,500Inverse C&H has formed on AMS over the last month and a bit.
This has been the consolidation range as the downtrend seems to be coming to an end.
We are seeing signs that the price is nearly ready to break up and out of the pattern.
7>21
Price<200 - But the price need to go back up as it acts as an elastic.
RSI >50
Target R1,500
SMC
Sell Side LIquidity Order block has formed below the handle of the cup
Smart Money buys into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter into their trades.
Bullish Bias
Jubilee ready to crash further to R1.20 with this H&S - SMC After a horrific crash from R4.22 down to R1.73.
There seems to be a consolidation range at the moment forming the next Head and Shoulders.
The right shoulder is not fully ripe yet, so we can expect a blip of upside to form the RS.
Once the price breaks below, then we'll see the next leg down.
Indicators are confirming downside to come inc.
200>21>7 - Bearish
RSI<50 Lower highs
Once the price breaks below the Neckline we can expect the first target at R1.20
SMC
Above the LS is clearly Buy Side Liquidity.
Smart Money SELLS into positions (and sweeps liquidity) from retail traders who are short (get stopped) and for long traders who buy and enter their trades.
About the company
The company's primary operations are in South Africa and Zambia.
Jubilee Metals Group specialises in the recovery of valuable metals that have been discarded in waste materials from previous mining activities.
As part of their operations, they deal with metals such as platinum, palladium, rhodium, ruthenium, iridium, gold, copper, nickel, and zinc.
The company uses proprietary technology and processes to extract these valuable materials.
The company was initially named "Jubilee Platinum" because of its focus on platinum extraction. The name was later changed to "Jubilee Metals Group" when the company diversified its operations beyond just platinum.
LESSON of the day: Wait for Strong and Confirmed BreakoutsMany people like to predict breakouts.
If there is one thing you learn today it's this.
Always WAIT for a strong and confirmed breakout.
There is a reason why the price hasn't breached the neckline (resistance). And that's because the fight is still on between the bulls and the bears.
Now that Glencore has broken down not only has it slanted the Cup and Handle pattern but also.
1. There is a Break- away gap - Bearish.
2. The price is below 200MA - Bearish
3. 7=21MA and looks to cross down.
Sure the price can turn up and close the gap, but the risk is too high!
So follow your strategy and wait for a confirmed breakout.
These lessons are important to learn before they become costly.