Overnight Moves

Today, we looked at 12 charts; below are only some of them, but first, let’s have a look at the overnight moves. We have news regarding the situation in the Middle East. US President Donald Trump has stated that he believes the conflict will soon come to an end. The Rand is doing a fair bit stronger today. PGMs are up, oil is down, and the markets are feeling more positive.

S&P 500 Index

Well, we had a complete turnaround from yesterday, managing to come up 0.85% and close just above 6,800. Our levels worked out incredibly well: our low support of 6,580 was around the day’s low, and we moved away from it, passing 6,630 and ending the day at 6,801. If we see further movement to the upside, we can then expect resistance around 6,850 and 6,880. If we see movement to the downside, which we have seen a little bit so far, we can then expect more sideways movement with support being at 6,630, 6,580, and 6,500.

Tencent Holdings (700)

Tencent launched Workbuddy, an Al agent for task management, enhancing its WeChat mini-programs. Shares rose 5.0% to HK$541.50, with Citi setting a target price of HK$783.00, and at the time of writing share value has seen further growth. Naspers holds approximately 24% exposure to Tencent with its ~57% stake in Prosus, which owns ~23% of Tencent directly, so Tencent’s performance heavily influences Naspers stock value as well as Prosus. We expect both Naspers (NPN) and Prosus (PRX) to do well today off the back of Tencent’s gains, but we are trading then around swing highs of both stocks and could see some profit taking, so just watch and be aware of the flow today.

Oil

Yesterday was quite a day for oil, as we watched on the Light Crude Oil Futures, we saw the price rise to just under $120 and then fall as low as $81. With all that movement, we have still managed to stay above the $84 level, but if we break that today, we should expect further movement to the downside. If the situation in the Middle East calms down and the Strait of Hormuz is reopened, we can then expect a complete flush back down to the low $70 range. The current situation is difficult to gauge direction, as all it takes is another ember to spark more conflict. Politically speaking, it makes sense that the Americans want to end the conflict as soon as possible because this will reflect negatively on their government if the oil price were to remain high.

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