Following the distribution of Discovery (See post below) it seems that it is ready for the markdown. Divergences in the RSI, declining relative strength, failed test of the 200sma and failed test of the yearly pivot point all point towards the continuation of the markdown.
A break of that bull flag technical chart pattern has a measured target of R135.
DSY break of flat bottom Triangle and closure below today will trigger further downside movement. wait for confirmation for the more aggressive investor nibble some
After a good markup phase, Discovery has undergone distribution. After a breakout of the distribution trading range (TR) price has backed up (BU) to the TR and is now pushing lower which could be the start of the markdown phase. Volume has declined on the BU and divergence with the volume RSI indicates a continuation of the decline.
Discovery DAILY is heading for DAILY RESISTANCE around R132.65 RSI is pointing up showing the momentum is in favor of this move. If resistance is broken the next TARGET will be the DOWN trend resistance around R142.50
We may derive the following from the Weekly DSY chart: 1. Price has been slowly correcting over the past few weeks. 2. It is probable that price will test the trend resistance line and then continue further down. 3. Monitor price action and be patient before trading. 4. As always - maintain your risk. Note: The views provided herein do not constitute...
Discovery DAILY has broken out of its short term DAILY range and is now heading towards the over head down trend RESISTANCE around R128
JSE:DSY Back test of the broken support now resistance and big red bar.
If confirmed, we can possibly be looking at a short move on JSE:DSY as it is at quite a strong resistance level, and might fail to break through it.
Discovery shares have had a strong rebound from the lows near R99 just under one month ago. The rebound, which is now nearing 22%, faces resistance in the form of two downward trend lines which can be seen on the hourly chart and could be used by traders to initiate a short/sell position in anticipation of a pullback. Trading Plan: Short/Sell DSY at 12081c (or...
Following the Discovery results, momentum indicators turned positive! The current trend set-up around the R 110 / R 115 levels re-affirms my expectation of a strong price recovery ahead.... This is a name where short gamma may plague the markets on the back of several director OTC hedges. Love the saying " A vulture is a patient bird "! It is a name that needs a...
- Shorts are favoured while price stays below R116 ... JSE:DSY
DSY has once again trended lower with LH and LL nice short run so far
Discovery looking like it is possibly consolidating at these levels, but will remain on the sidelines until such time it breaks to the upside (horizontal resistance above)
The chart is oversold on the short time frame and could bounce back a little with the previous resistance acting as a resistance again. In the longer time frame of the chart, Discovery is bearish dropping below all Fibonacci levels and breaking below key support levels, I expect it to go lower before bottoming out completely.