DSY trade ideas
#VIllageTraderZA Symmetrical triangle @VillageTraderZAWe have a giant symmetrical triangle pattern on Discovery. We recently had a golden cross on the stock. A breakout from the triangle provides an excellent risk reward opportunity with a stop loss just below the 200 day EMA at R132 and a profit target using the width of the triangle from its broadest point
DSY on my radarPrice may have found a base of support at 12650 but there is bearish engulfing candle from the LTD, which indicates selling pressure around the 13000 level as price moved down sharply after testing this level. Patience here looking for a bounce and close above the DEMA for a long. The long term trend is currently up.
Discovery - Long (Swing trade)- #JSEDSY has reached oversold levels and is looking to get a bit of relief from the last leg down
- Decent breakout out of a consolidation period
- Increasing volume on the daily and bullish price action
-Aiming for the R130 zone and then the 200 day moving average / R126.50 will be the first hurdle for the bulls
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:DSY Next leg up?JSE:DSY looking to be consolidating at the .618 Fib level and finding support on the daily around R120. Strong Bullish Divergence on the daily with Hidden Continuation Divergence on the weekly and seems like we could be starting to ramp upwards heading into earnings announcement.
Confirmation of move - break the R135 mark. Stop loss at R118 as next support level is R106 and then R94.
Fundamentals - Vaccination drives ramping up in SA, Discovery Bank market share increase and insurance mindset adjustment in SA...
Discovery - Short Term Oversold?*Short Term Traders Only*
DSY has acted well, first on the long side from just above 13000c, followed by an exit at 15200c (see related).
Reviewing the daily chart, the 7-day RSI is 'NEAR OVERSOLD' and judging by previous readings, this may be an opportunity for short term traders to pick up some for a move to say, around 13300c.
Buy at current level, 12581c or better.
Stop-loss: 12240c
DSY: 200-day acted as major supportSeems like the 200-day acting as major support.
Furthermore, the price action corrected from the lower range of the linear regression channel. This increases the likelihood of a mean reversion trade.
Bullish MACD crossover supports the bullish trend direction.
Upside price momentum supports the bullish trend direction.
Discovery Ltd AnalysisDiscovery has been on a gradual uptrend since 2008 and seeing more volatility and trading activity around 2013. Since then it has only broken uptrend support line last year during the lockdown impact on the industry as a whole. The good news is it quickly recovered and went back above the support line and is currently sitting very comfortable.
However on the down side, considering the very active fluctuations, the stock has basically had no growth from 2015 until now.
If we look at it from a closed window point of view however, the share price has been on an uptrend since the Covid dip. Recently experiencing lower highs, lets hope this is just part of the general fluctuations and hopefully we see some positive movement. Price to beat since covid is R 160.00 which looks like a major resistance at this point.