Top5 oversold/overbought according to RSI & Tiger BrandsFTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Invicta 12
City Lodge 14
Eoh 15
Cashbuild 18
Tiger Brands 20
Overbought:
DRDGold 77
Harmony Gold 72
Goldfields 71
Royal Bafokeng Platinum 70
AngloGold 70
Spending some time on Tiger Brands. After a horrible trading statement last week, Tiger Brands not only dropped down to a new 52-week low, but also dropped down to levels last seen in March 2011.
Trading Statement:
Shareholders are accordingly advised that:
- Earnings per share (EPS) from total operations is expected to be at least 36% (or 311 cents) lower than the 864 cents reported for the same period last year.
- Headline earnings per share (HEPS) from total operations is expected to be between 533 cents and 478 cents, which is between 30% and 37% lower than the 762 cents reported for the corresponding period last year.
- EPS from continuing operations (including VAMP) is expected to be at least 35% (or 306 cents) lower than the 875 cents reported for the corresponding period last year.
- HEPS from continuing operations (including VAMP) is expected to be between 552 cents and 497 cents, which is between 29% and 36% lower than the 773 cents reported for the corresponding period last year.
This saw Tiger Brand’s (TBS) share price break a very strong 1-year support-line. Although TBS now finds itself in EXTREME OVERSOLD according to it’s 14-day RSI, traders should caution against trying to catch falling knives going long at this stage. I would definitely wait for the actual results, expected only on 25 May 2020, before doing anything at this stage.
For the brave I would recommend waiting for a confirmation and break above the 21-day moving average (at R187) before going long. This should place TBS back within the support-line, which could see this as a possible false break.