Top5 oversold/overbought according to RSI & Naspers
Top 5 Oversold & Overbought currently according to their 14-day RSI’s:
Oversold:
Ascendis Health 24
Prosus 28
Telkom 29
Sun International 30
Nampak 32
Overbought:
Capitec Bank 74
Momentum Metropolitan 74
MediClinic 73
Stor-Age Property 72
Aspen 71
This week I want to spend some time on Naspers, as data on Prosus is still a bit thin. Both the companies find itself heavily oversold according to it’s 14-day RSI’s. In Naspers’s case, price went below 30’s RSI, three times before since 30 October 2018. If history was anything to go by, this would generally be the time to buy Naspers (or Prosus).
After the Prosus unbundling announcement was made in March this, first Naspers and then Naspers and Prosus (added) together initially outperformed Tencent (all entities in USD). We however saw a reversal of this movement over the past few weeks, with Tencent now moving ahead of the Prosus/Naspers combined pricing. This indicate that there might again be an opportunity for value seekers to buy into the bigger discount to SOTP.
We’ve also seen that Naspers has developed a strong support level round the R2050 levels, which was tested 3 times before since March this year. Should this support level again holdup, could see the price test R2200 soon, with a break and close above these levels, most probably testing the 50- and 200-day moving averages at R2260. Should we break this level, will move my target on Naspers to R2380.
I am however EXTREMELY worried about the Death Cross developing in the 50- and 200-day moving averages, with a cross most probably seeing us test the R2050, with a break and close below this level, putting the R2000 mark in big danger. We saw how easily Prosus went through the R1000 mark this week.
My recommendation for short-term traders, is to wait before trying to go long (buy). The trend is currently not Naspers’s friend and will a personally wait for a confirmation of trend reversal, before I put some skin in the game.
Oversold:
Ascendis Health 24
Prosus 28
Telkom 29
Sun International 30
Nampak 32
Overbought:
Capitec Bank 74
Momentum Metropolitan 74
MediClinic 73
Stor-Age Property 72
Aspen 71
This week I want to spend some time on Naspers, as data on Prosus is still a bit thin. Both the companies find itself heavily oversold according to it’s 14-day RSI’s. In Naspers’s case, price went below 30’s RSI, three times before since 30 October 2018. If history was anything to go by, this would generally be the time to buy Naspers (or Prosus).
After the Prosus unbundling announcement was made in March this, first Naspers and then Naspers and Prosus (added) together initially outperformed Tencent (all entities in USD). We however saw a reversal of this movement over the past few weeks, with Tencent now moving ahead of the Prosus/Naspers combined pricing. This indicate that there might again be an opportunity for value seekers to buy into the bigger discount to SOTP.
We’ve also seen that Naspers has developed a strong support level round the R2050 levels, which was tested 3 times before since March this year. Should this support level again holdup, could see the price test R2200 soon, with a break and close above these levels, most probably testing the 50- and 200-day moving averages at R2260. Should we break this level, will move my target on Naspers to R2380.
I am however EXTREMELY worried about the Death Cross developing in the 50- and 200-day moving averages, with a cross most probably seeing us test the R2050, with a break and close below this level, putting the R2000 mark in big danger. We saw how easily Prosus went through the R1000 mark this week.
My recommendation for short-term traders, is to wait before trying to go long (buy). The trend is currently not Naspers’s friend and will a personally wait for a confirmation of trend reversal, before I put some skin in the game.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.