FTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
PPC 25
Hyprop 25
Telkom 25
Woolworths 26
Advtech 26
Overbought:
Omnia 86
Astral 78
Vukile Property 75
Sirius Real Estate 75
AECI 72
Spending some time on AECI. This remains one of my favorite Value stocks on the JSE. On 6 July 2019, I brought out a long recommendation on the company, with AECI reaching the short-term target set (R106) -
The share price does find itself now in extreme overbought according to its 14 day RSI & pops the question – time to sell or hold?
While it’s been outperforming the FTSE/JSE All Share on rolling 12- month period, you can clearly see the share price still got some strong momentum behind it.
We can also see that it’s currently flirting with the top of an Ascending Triangle Pattern, with a break and close above R106, most probably looking for resistance only at R117.
What is an Ascending Triangle?
According to Investopedia.com, it's where:
- The trendlines of a triangle need to run along at least two swing highs and two swing lows.
- Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
- A long trade is taken if the price breaks above the top of the pattern.
- A short trade is taken if the price breaks below the lower trendline .
- A stop loss is typically placed just outside the pattern on the opposite side from the breakout.
- A profit target is calculated by taking the height of the triangle, at its thickest point, and adding or subtracting that to/from the breakout point.
Should the resistance however hold and we see a pullback, could see the share price only seeking support at R100, which also correlates with the 50-day moving average. A break and close below this level will most probably see us back at the 200-day moving average (R95.90), which will definitely see me buying if I wasn’t long already (which I am).
Fundamentally the company is healthy (read our report here: http://oldoak.co.za/wp/index.php/2019/08/02/get-to-know-your-jse-companies-aeci-ltd-jse-afe-2/). Thomson Reuters currently got a consensus target price of R121.70 on the company, while our target price currently on the company is R120.
Oversold:
PPC 25
Hyprop 25
Telkom 25
Woolworths 26
Advtech 26
Overbought:
Omnia 86
Astral 78
Vukile Property 75
Sirius Real Estate 75
AECI 72
Spending some time on AECI. This remains one of my favorite Value stocks on the JSE. On 6 July 2019, I brought out a long recommendation on the company, with AECI reaching the short-term target set (R106) -
The share price does find itself now in extreme overbought according to its 14 day RSI & pops the question – time to sell or hold?
While it’s been outperforming the FTSE/JSE All Share on rolling 12- month period, you can clearly see the share price still got some strong momentum behind it.
We can also see that it’s currently flirting with the top of an Ascending Triangle Pattern, with a break and close above R106, most probably looking for resistance only at R117.
What is an Ascending Triangle?
According to Investopedia.com, it's where:
- The trendlines of a triangle need to run along at least two swing highs and two swing lows.
- Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
- A long trade is taken if the price breaks above the top of the pattern.
- A short trade is taken if the price breaks below the lower trendline .
- A stop loss is typically placed just outside the pattern on the opposite side from the breakout.
- A profit target is calculated by taking the height of the triangle, at its thickest point, and adding or subtracting that to/from the breakout point.
Should the resistance however hold and we see a pullback, could see the share price only seeking support at R100, which also correlates with the 50-day moving average. A break and close below this level will most probably see us back at the 200-day moving average (R95.90), which will definitely see me buying if I wasn’t long already (which I am).
Fundamentally the company is healthy (read our report here: http://oldoak.co.za/wp/index.php/2019/08/02/get-to-know-your-jse-companies-aeci-ltd-jse-afe-2/). Thomson Reuters currently got a consensus target price of R121.70 on the company, while our target price currently on the company is R120.