Overnight Moves

Today, we looked at 7 charts; below are only some of them, but first, let’s have a look at what happened over the weekend. The rand is feeling a little weaker this morning. Silver and Platinum are up by 1.81% and 1.52%, respectively. One thing to take note of today is that our market, along with others, is a bit in the red, and as a result, we are not expecting a lot of gains today.

S&P 500 Index

So we finally have some movement on the S&P 500 Futures. We saw a bounce from around 6,580, so we can now use that as our new support level along with 6,630. We need to wait and see what happens today, as the market might want to close the gap, but we could also see further selling. Our level of resistance after closing the gap will be 6,800. If we do see further selling, you can then expect 6,500 as our next big level.

Oil

Oil is the big one for today. Monday starts off with a huge move to the upside, with a gap forming between today and Friday’s close. During the early hours of the morning, we nearly saw the price reach $120, but we have since pulled back. If we manage to reach those highs again but do not break past it, then we might have found a bit of a top in the short term. On days like today, when there are these big moves, it is important not to go into the session with any preconceived ideas, as you just do not know what the market will do.

Thungela Resources (TGA)

Thungela is dual listed, with the main listing being on the JSE and the secondary listing being in London. We saw this stock move lower in London and expected it to do the same locally, but it instead had a strong performance thanks to the rise in coal prices due to the higher demand to be used as a stopgap while the availability of oil is volatile, thanks to the situation in the Middle East. By the end of the day, both listings had gained substantially. We expect the gains to continue today, but we will also suggest playing it safe and see if there is any selling due to profit taking, as this could be an opportunity to short. We are on the cusp of R160, and this stock could very well go to R180 if we see further gains at open.

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