Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

Yesterday was another rough day for the U.S. market, with the S&P 500 failing to breach the weekly resistance level. Currently, the market is in a somewhat bullish position, as it reached but did not break the previous day’s lows. But with the action being bearish, it makes today more of a wait-and-see day. We also saw President Trump announcing further attacks against Iran, which only prompted a subtle reaction from the market, even with regard to oil prices, which is a far cry from the dramatic shifts we saw earlier in the war.

Softwares

The software sector had notable earnings from Oracle (ORCL) yesterday, in which they were able to beat both earnings and revenue expectations. But news of Oracle raising debt which seems to have soured the sentiment, as it raised questions regarding where the return on investment would be, and Oracle traded poorly afterwards. This puts pressure on software stocks, which are already struggling as a part of the broader tech sector, and all eyes turn to Adobe’s (ADBE) earnings later today.

Left: the iShares Expanded Tech-Software Sector ETF, right: Oracle (ORCL) 

Gold

Gold continues to struggle, with it nearly testing $4000, and currently resting at around $4100, which it previously tested during the massive drop we saw on 23rd March. We see $4000 as the next major level to the downside, and $4122 as the bare minimum to break, for further growth towards the $4200s.

Local Stocks

Gold Miners

With gold struggling, gold miners present an opportunity for bottom trading. We see AngloGold Ashanti (ANG) and Harmony (HAR) as the best of the bunch in terms of fundamentals. In regard to AngloGold, we see R1300 as the level to look out for, as it could result in swing lows of R1250. As for Harmony, it could go down to R220. We also recommend keeping an eye on the retail and banking sectors today, as if you see selling there, it could be a sign of rotation into golds and the platinum groups.

Left: AngloGold Ashanti (ANG), right: Harmony Gold Mining (HAR)

MTN Group (MTN)

MTN has announced a partnership with Ant International, which resulted in elevated trade volume yesterday. The selling seems to take place around R216, which makes it the level to watch; if it were to break, we could see it up to R217 and R220 from there.

Earnings & Economic Data

After-Market Earnings

Adobe (ADBE)

Adobe is an American software company, known for programs such as Photoshop and PDF. It’s also this week’s second major software earnings.

Economic Data

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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.