Jump to content

Potential Long on the South Africa 40 next week?


Recommended Posts

I expect if you're looked at the SA40, you are aware of the back drop of recent events. For the benefit of those who may not follow South Africa closely, here are some thoughts on recent events and the key (to my mind) forthcoming risk event:

 

1. In the short term, the furniture manufacturer Steinhoff recently lost over half its value due to an accounting scandal. As the second largest furniture manufacturer in the world after Ikea and one of South Africa's largest market cap companies, its performance will have impacted the SA40 index materially. At this point downside is priced in, so more an upside risk if the investigation concludes that losses/mis-statements are smaller than feared.

 

2. The ANC ruling party have just elected a new leader. This means that although Zuma remains president of South Africa, he now has diluted control over the ANC party, and this could lead to a more business and investor friendly attitude from the ANC party and the South African government in time. There is also a hope that a crack down on corruption and under-performance in various government bodies comes in time.

 

3. Looking ahead, I believe the next budget speech is in February. This could significantly impact SA40 and the exchange rate depending on the degree to which is targets economic (growth/debt) issues versus social/political issues.

 

Ian

Link to comment

 & ,  This is good stuff you guys, the technicals show an uptrend with a pullback and a nice rounded bottom on the 4 hour chart which is now testing the breakout level. But wait for a breakout of  52261 or a break through and retest of 52261.

If it does breakout the risk is limited (stop loss just below 52261) but the target is big at the prior high at 55245. 

 

As   points out there are fundamental risks ahead which could scupper the party but always shoot first and ask questions latter, with a well defined tight stop and big target get in, you can always bail out if the tide turns.

 

South Africa 40_20171222_23.07.png 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,018
    • Total Posts
      88,016
    • Total Members
      69,013
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Amyy
    Joined 28/09/22 02:42
  • Posts

    • Stocks: AAPL, AMZN, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM. Elliott Wave  US Stock Bear Market: AMZN, AAPL, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM, GS. Elliott Wave Technical Analysis  Stock Makret News: Options activity hints U.S. stock market has not reached bottom- Barclays Stock Market Summary: Elliott Wave Count: Wave (ii) or (iv) depending on the stock. Analysis US Stocks: Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Trading strategies: The market is still trending lower in the medium term. Continue on the short side of the market and short the corrective rally today. We are holding wide stops through wave fours and will exit at Wave 5 of (1) Video Chapters 00:00 NASDAQ 100 03:59 Apple (AAPL) 08:08 NVIDIA (NVDA) 10:31 Amazon (AMZN) 15:18 Meta Platforms (META) 17:22 Netflix (NFLX)  22:09 Enphase (ENPH) 24:26 Tesla (TSLA) 30:27 Alphabet (GOOGL)  32:02 Microsoft (MSFT) 34:10 Berkshire Hathaway (BRK.B) 37:27 Block Inc. (SQ)  39:05 Banks JPM, GS 51:01 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • The market debut of German sports car maker Porsche is looking like it will be at the top end of expectations. IGTV’s Jeremy Naylor explains how will impact on Volkswagen. vow    
    • What markets to trade on Wednesday: USD/JPY, AUD/USD, Dax & BOO With economic data key on Wednesday IGTV’s Jeremy Naylor looks at how it would affect the Yen, the Aussie and the Dax. On the corporate agenda Boohoo (BOO) delivers H1 earnings.          
×
×
  • Create New...