Overnight Moves
Today, we looked at 15 charts; below are only some of them, but first, let’s have a look at the overnight moves. We are seeing some green today. Oil is moving higher, so keep an eye on Sasol, but we are wondering about the consequences of this, as we will feel pressure on equities, and how inflation will be detrimental. Tencent is up, so expect Naspers and Prosus to be affected today.
S&P 500 Index
We saw more of the same yesterday, as the market seems to continue its general trends of sideways movement, but we did notice that there was more selling during the US hours, though only marginally. We expect no real difference in movement today and will wait and see if we get a catalyst that can help change the direction. Since we are looking at further sideways movement, we suggest sticking to the range and managing your risk. We have resistance at 6,900 if we manage to pass and hold above 6,850. Support can be found at 6,800 and 6,750.
Sea Limited (SE)
Sea had earnings on Tuesday and was down 16,53%, but has made a bit of a comeback, so it is worth watching to see if we can close the gap. This would have been a nice play to come in during that low period at around $87 with a stop-loss at or just below $86. This was a nice play, with the down day providing a perfect entry followed by a very tight sideways consolidation that gave us a very nice risk-to-reward ratio. We think it’s worth keeping an eye on this chart to see how it moves at open, as we could see further gains.
Impala Platinum (IMP)
Impala had news yesterday, coming out with earnings, and the market was quite disappointed. This was mainly due to dividends, as when compared to other companies that have payout ratios between 70% to 100%, whereas Impala only has a payout of about 50%, which is definitely below what the market was expecting. Our next big level is R260, and if we break past it, we will then have some room until R240 and R230, which are our next supports.
The magic happens in our community!
We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors.
If you are not trading with us yet, what is stopping you?
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.
