MarcoOlevano

MarcoOlevano Updated 

I dont know if history will repeat this time around but what i have noticed over the last 6 months is that every-time the DOW US30 has made a move below the 200 day ma (green line), it tends to be followed by a reversal higher above the 200dma in the succeeding days... If this bounce does take place the obvious target would be 28170 to take profit - generally the...

MarcoOlevano

We are developing a scary head and shoulders top formation in both Naspers and Prosus. Should we convincingly break below the necklines of the respective charts at approximately R2376 and R1050 respectively, we have downside targets some 18.6% and 13.6% away from current levels on Naspers and Prosus. (Price targets if H&S formation plays out, NPN : R2014, PRX: R927)

MarcoOlevano Updated 

The series of higher lows on my RSI and MACD indicator against a series of lower lows in Price is starting to give me some technical indication that we could start to see Gold miners outperform platinum miners. We are seeing Bullish divergence here and it would not surprise to see this pair ratio of (J150 GOLD miners vs. J153 Platinum miners) move from current...

MarcoOlevano Updated 

I have spent some time Dissecting the chart of PSG group and my findings lead me to believe that the stock is destined for some downside in the next few weeks. Firstly, the formation of a double top and the consequent break of the neckline at R225 projects a technical target of R205. However, it is also possible that we tag the S1 Pivot level just below @ R195....

MarcoOlevano Updated 

I'm starting to keep a close eye on Harmony Gold. It has retreated almost 30% from the highs printed on the 6th of January this year @ R58.64. The current area at R42 has been a major support level for harmony over the last 6 months with multiple reversals off this zone. What adds some further strength to this level is that we also see the 200 day moving average...

MarcoOlevano

Sasol has come under sustained pressure over the last three days, after news broke out that they experienced an explosion at their LCCP facilities. The market is concerned surrounding the potential for further delays to this project as a result of the damages caused. From a technical point of view, the counter is now retesting the breakout of the triangular...

MarcoOlevano

Assore Ltd was in a solid downtrend for the best part of the 2nd half of 2019, dropping from a high of just over R400 down to a low of R215. However, towards the end of 2019 we saw the stock break the downtrend line (DTL) and start to trade above the 50 dma (blue line) which was the first clue that the stock was turning the corner. During December, the stock then...

MarcoOlevano

The 200 week moving average has provided a significant level of support for the USDZAR currency pair since 2017. (see boxes) I will be watching the 200 wma at 13.81 with keen interest as any reversal off this level could indicate a short term move higher in the pair. The level of 20 on the RSI indicator has provided support for the dollar and is not quite...

MarcoOlevano

After touching a low of R156 in January 2016, the stock is up by a whopping 791%!! (current price : R1390) The last time the RSI reached these levels of 90 on the monthly chart back in Jun - August 2017, we saw the stock retrace almost R500 in 3 months!! While i am not suggesting that history repeats itself, i am merely advising caution at chasing Anglo Plats as...

MarcoOlevano

The MTN share price is at a very interesting inflection point. The Level of R85 is where we find both the trendline support which formed from the September 18’ lows as well as the declining channel which has formed since June. The moving averages are configured with a slight bearish bias so I would not look for extended targets here, but given that the 200 day...

MarcoOlevano

I've been keeping a close eye on Telkom lately. Since topping out at R100 in June this year, it has more than halved in price during the last few months. What has caught my eye is the substantial increase in volume that we have seen at these lower levels. This almost gives me the feeling that market participants have started to capitulate which is normally a good...

MarcoOlevano

Considering Netcare's price action holds up today and closes above the neckline level at 18.65, we are witnessing the completion of an inverse or reverse Head & Shoulders formation. Results released yesterday have been received well by the market, which should ease investors concerns for the time being. These patterns are reversal patterns that form at the end of...

MarcoOlevano

Keep an eye on the US Dollar against the Japanese Yen. A breakdown of this wedge could indicate the market is seeking safety and see a sell-off in risk-assets such as equities. The Pair has rejected off the 200 day moving average (green line) and is also showing signs of bearish divergence, where higher price is not being confirmed by RSI which is making lower highs.

MarcoOlevano Updated 

Sanlam has outperformed Standard bank by a margin of 27% from the lows we saw in May of this year. The chart of their relative ratios ( SLM / SBK ) has now approached an important area of resistance (0.46 to 0.477) which has been in place for the last two years. If you take a look at the individual charts of the underlying counters, one will notice that Sanlam has...

MarcoOlevano

Firstrand is starting to look tired here having reversed off the first big resistance level (R69-R70) as well as trend line connecting the stocks all-time high from MAR 18. My biggest concern is that the rally from the lows in August has taken place on declining volume which doesn't give me a great deal of confidence in this rally. Secondly we are starting to see...

MarcoOlevano

The JSE's property sector has unfortunately been under immense pressure over the last 2 years and the weakness exhibited by these property counters have provided many opportunities for the bears to capitalize on. What I have identified on Emira Property fund is that the stock tends to trade in range bound rectangular consolidation pattern for a period of time...

MarcoOlevano

After Moody's decision on Friday night to downgrade South Africa's credit outlook to negative, there is a keen amount of interest in the direction of the rand and I thought it would be useful to make an observation in this regard. Firstly, it is interesting that the rand has made 3 lower swing high's since tagging the 15.44 horizontal resistance level back in...

MarcoOlevano Updated 

Shoprite looks constructive for the bulls with the formation of the cup & handle formation. The break above the patterns resistance level @ R130 is an important technical development for the stock which should hopefully result in both technical targets being reached in the days/weeks ahead. First target at R140 is measured by taking the distance of the handle and...