Overnight Moves
Today, we looked at 13 charts; below are only a few. Join us in the morning call on Discord to see it all. Let’s have a look at the overnight moves. Today we open to a weaker Rand, and a red market in general, as the Strait of Hormuz was closed over the weekend. As a result, oil has seen a massive jump of over 11%, while the rest of the market is starting to recover as usual, though we doubt the growth will be as dramatic as what we saw on Friday.
Looking at the chart below, Tencent (700) may appear as an anomaly, but it’s important to note that the Asian session had already closed by the time we heard the bad news. As a result, we expect it to catch up today, and subsequently for Naspers (NPN) and Prosus (PRX) to open flat today, while Thungela (TGA), Sasol (SOL), and Exxaro (EXX) go up.
S&P 500 Index
Today will most likely be a difficult trading day for the S&P 500, as it was at an all time high last Friday, but following the weekend’s news, it dropped down to 7,100. range. We expect it to remain in the same zone in the short-term future, barring dramatic headlines that push it up again. It’s important to note that the index is currently growing, but it’s not a universal feature at all, with most of the growth concentrated in a select few of the stocks. As for companies that you might want to keep an eye on, we suggest Tesla (TSLA) Servicenow (NOW) and Boeing (BA), as they are scheduled to have their earnings on Wednesday, the 22nd.
South African Trades
We expect most of the stocks in the U.S. market to be down today, so we’ve researched and compiled a list of South African stocks with swingtrade potential to keep an eye on.
Woolworths (WHL)
Woolworths has a clear range between R50 and R51. It had a great day on Friday, which brought it to shy of R52. We speculate that it will go down to 50 Rand in the near future.
Boxer (BOX)
Boxer Retail’s range seems to be between R73 and R74, and we recommend keeping an eye out in case if it drops down to the R70 range during the week.
Blu (BLU)
Blu appears to have found a bottom at R8.50 after its dividends and has been slowly growing since. We believe that it has growth potential with the right kind of headlines.
Aspen Pharmacare (APN)
Aspen had a surprisingly weak day on friday, but it maintains a relatively high value today. It remains to be seen whether it will go up or down, but we speculate that if it hits the R124 range, it’s likely to continue dropping.
Bid Corporation (BID)
Bid Corp shares are likely to grow during the week, as they benefit from the increased food prices, as well as today’s weaker rand.
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*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.
