Local Equity Report – 29 Feb 2024

A new type of report where we analyse potential medium term trades setups and investment ideas. We scan the universe for counters that have low risk potential and entry levels in anticipation of impending trends. Inputs and suggestions will be appreciated. Note: The analysed shares have a similar outlook that could coincide with a general bull trend in local equities.
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SA EQUITIES TRADE – SETUPS

MEDIUM TERM TRADE AND INVESTMENT OPPORTUNITIES

SUMMARY:

Low risk trade and investment opportunities in anticipation of a meaningful trend is the primary driver of exceptional returns. Tech-nical analysis is a useful tool in identifying such impending trends at a very early stage of development.

TRADE/INVESTMENT SETUP:

A trade setup occurs when a number of technical signals point to the probability of a new and meaningful trend potential in the near future.

EFFECTIVE USE OF TRADE SETUPS:

• A setup is identified as a unconfirmed trade/investment idea that is at an early stage of development.
• Technical analysis will outline preferred market action and other technical developments that is required before the view can be confirmed.
• The potential trade must be monitored to assess if subsequent market developments confirm or negate the idea.
• Entry-, target- and negation levels are utilized to limit risk in a high probability and confirmed setup.

 

SA EQUITY EXAMPLES:

  1. Glencore (GLN)
  2. Anheuser Busch Inbev (ANH)
  3. Naspers (NPN)

GLENCORE DAILY

CORRECTION WITHIN LARGER BULL TREND

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Level: 9055

ANHEUSER BUSCH INBEV

BULLISH R1*/S1* CONTINUATION PATTERN

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Level: 119100

This report is for informational purposes only, does not constitute an offer, or solicitation to trade and should not be construed as a recommendation, or advice, to enter into, or to refrain from entering into, any transaction.

Whilst the information herein contained is believed to be reliable, no responsibility is assumed by Hite Investments and Consulting, (Pty) Ltd., their employees, associates, external contributors, or any of the references used, for any errors, or omissions, or for losses of any nature which may arise from any opinion expressed herein.

You are cautioned that information is not necessarily complete and that opinions of individuals employed at the above may differ, or be based on contrary analysis techniques andthat opinions may change over time.

The losses in trading and investing can be substantial and you should not engage in such trading and investing unlessyou fully understand all the potential risks.

The views expressed in this report may change over time and updated reports will not necessarily be issued should this occur.

Red Line: “Roadmap” – A visual representation of proba-ble future price action. A perforated red line suggest various proba-ble outcomes with the perforated line being

Blue Line: Trend Lines that constitute important sup-port / resistance or break levels

TA – Target area
MA – Moving average
R – Resistance
RA – Resistance area
MR – Minor Resistance
MS – Minor Support
MTR – Medium Term Resistance
MTS – Medium Term Support
SA – Support Area
S – Support
T – Target
* or ** – Significance of level

The intention of this analysis is to give the reader a visual picture of the most probable price path that could develop over time. This is enhanced by adding crucial levels where the proposed view becomes dubious and needs to be re-assessed (or confirmed). The benefit of this approach is that of an easy to understand and almost instantaneous grasp of the analysts view. This kind of analysis is not intended to be exact in predicting levels, and especially timing of moves, but to give a more general probability view that is easily understandable and unambiguous. The proposed “roadmap” gets adjusted over time as new price information becomes available. All technical views have re-assessment or negation levels where the proposed preference is no longer valid or needs to be re-assessed.