Medium Term Equity Trade Ideas Review – 07 May 2024

An update on medium term local equity trade ideas. Any suggestions and feedback on the usefulness, periodicity and market inclusion into the opportunistic trade idea reports will be appreciated.
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REVIEW AND UPDATE OF MEDIUM TERM TRADES:

SUMMARY: 

Low risk  trade and investment opportunities in anticipation of a meaningful trend is the primary driver of exceptional returns.

The main benefit of a trade setup is the opportunistic, low risk entry levels with nearby negations. The goal of this review is to update the current situation. Both Glencore and Naspers have since moved away from their low risk entry areas.

 

SA EQUITY EXAMPLES:

  1. Glencore GLN – (108.15) Technical Hold.
    The expectation of a bull trend of a corrective phase is materializing. The market reversed of opportunistic buying levels between 88.50 and 91.40. Target levels remain at  123.00 and 135.00 as an extended trend level. Negation level for the bullish outlook is at 102.30.
    .
  2. Anheuser Busch Inbev ANH – (1118.34) Opportunistic buy between 1076.00 and 1040.00.
    The recent break below 1154.00 has neutralized the previous bullish stance. The current deeper corrective phase could, however be followed by meaningful gains to 1240.00 and even 1326.00. 1040.00 is the negation level for the bullish bias
    .
  3. Naspers NPN- Technical hold – (3736.75).
    The expected gains out of a bullish consolidation phase is materializing with target levels at 3970.00 and an extended target of 4700.00. A break below 3522.00 will neutralize the bullish outlook.

GLENCORE DAILY

VIEW RETAINED: BULL TREND MATERIALIZING

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Level: 10815

ANHEUSER BUSCH INBEV

VIEW ADJUSTED: PQ CORRECTION PRECEDING BULL TREND TO t1

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Level: 111834

NASPERS

VIEW RETAINED: BULLISH CONTINUATION PATTERN

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Level: 373675

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.