Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday’s session was more or less flat, with a marginal growth at one point, meaning the market’s direction remains unclear as of yet. As such, it’s important to keep a close eye to see if it consolidates and grows, or continues to drop. To that end, it could be worthwhile to also keep an eye on the VIX (Volatility Index), as it going above 20 points could be an indication of the market moving downwards again.
Softwares
The softwares had a day yesterday, holding up relatively well. ServiceNow (NOW) in particular did well, seeing growth after nearly closing a previous gap. It’s currently standing at around $114, and it’s likely to reach $120, if it’s able to break $116. As for the rest of the sector, Oracle (ORCL) has earnings tomorrow, and Adobe (ADBE) on Thursday, which we recommend keeping an eye on.
Left: iShares Expanded Tech-Software Sector ETF (IGV), right: ServiceNow (NOW)
Tencent (700)
Tencent has managed to climb to the HK$450s, which looks rather good for the company’s chances of breaking out. We speculate that with a good news or two, Tencent can reach the HK$480 mark, and at that point, the HK$500 mark will be in the cards. For now, their 2% overnight growth should make it easier for Naspers (NPN) and Prosus (PRX) to bounce from their recent drops.
Local Stocks
British American Tobacco (BTI)
BTI had a great performance on Friday, and remains in the green today. Normally, it’s considered a great hedge, as when the market goes down, it tends to move up.
Absa Group (ABG)
Absa has had a few days of strong buying, reaching R235. It’s on the watch list as a good local option, with a clear level of support around R225, and if it moves above the R240 line, it might be able to break its downward trend.
Valterra Platinum (VAL)
Valterra traded relatively well compared to the other PGM (Platinum Group Metals) miners. It’s likely to be the best performer if PGMs see a turnaround.
Economic Data
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