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$JSEPAN - Pan African Resources: Target Reached, More Upside?See link below for previous analysis. The double bottom target and new all time high of 685 cps has been reached and exceeded. Looking at the price structure from 283 cps, I am now viewing the advance as a five wave impulse that is currently in wave 3 of (5). A correction for wave 4 will set the scene for further advance in wave 5; in commodities and commodity stocks, fifth waves tend to be larger than third waves which is very bullish for PAN. Buy the dips.
JSE:PANLong
by Loyiso_BlaqueSoros_Mpeta
1
Our opinion on the current state of AB-INBEV(ANH)Anheuser-Busch, or AB-InBev (ANH), is the world's largest brewer of beer, operating in both first-world countries and emerging markets. ANH trades on the JSE as ANH, the Brussels Stock Exchange as ABI, and the New York Stock Exchange (NYSE) as BUD. The company announced its intention to list its Asia-Pacific arm on the Hong Kong Stock Exchange to raise approximately $10 billion, with the cash aimed at reducing its debt. The company has well-known brands like Budweiser, Stella Artois, Castle, Becks, and Corona. After acquiring SA Breweries, AB InBev became four times the size of the world's next largest brewer, Heineken, leaving limited potential for further meaningful acquisitions. Growth from here on must be organic. Due to its American exposure, the company reports quarterly. In its results for the six months to 30th June 2024, the company reported revenue up 2.7% and underlying earnings per share (EPS) of 90c (US) compared with 72c in the previous period. Headline earnings per share (HEPS) rose to 133c from 100c. The company stated, "Volume growth in our Middle Americas, South America, Europe, and Africa regions was primarily offset by performance in China and Argentina, resulting in an overall volume decline of 0.8%." From a private investor's perspective, this is a massive international blue-chip share, which is also a good rand-hedge. At current levels, it is trading on a P:E of 20.53, which still looks fairly fully priced to us. Technically, the share was in a downward trend from when it listed on the JSE, and we recommended waiting until it broke up through its long-term downward trendline. That happened on 4th November 2022 at 94065c. It has since moved up to 110639c.
JSE:ANH
by PDSnetSA
Our opinion on the current state of ARCMITTAL(ACL)ArcelorMittal (ACL) is South Africa's largest steel-producing company. It has survived while other companies, like Highveld Steel, have disappeared. Arguably, ArcelorMittal felt the impact of the sub-prime crisis more than any other South African company, with its share price falling from a high of R260 in June 2008 to as low as 25c in August 2020. Since then, the share price has rallied strongly and now trades at 1052c. The company has had to contend with the collapse of the local construction industry, which was a major consumer of steel, as well as massive imports of cheap Chinese steel that were dumped onto the South African market. Those imports have slowed down somewhat, and ArcelorMittal was successful in securing certain tariffs to discourage imports. We believe that this company came close to closure in July 2020 when the share price reached 25c. However, it has been rescued by the rising steel price combined with severe cost-cutting measures. In its results for the six months to 30th June 2024, the company reported revenue down 3% and a headline loss of 100c per share compared with a loss of 40c in the previous period. The company stated, "The financial results were negatively impacted by the difficult local and regional trading conditions, and by the negative volume and direct cost impact of operational interruptions of the two blast furnaces at Vanderbijlpark." In an update on 3rd July 2024, the company mentioned, "The Longs steel product operations ("Longs Business") have been operationally stable for H1 2024. The Flats steel product operations ("Flats Business") in Vanderbijlpark experienced notable levels of instability at its blast furnaces in April and May 2024. Due to the intensive cash management actions, the net borrowings position is anticipated to remain within tolerable levels." We recommended waiting for the share to break above its 200-day moving average before investigating further. That happened on 10th July 2024 at 129c per share. Since then, the share has moved up to 136c and looks like it may be entering a new upward trend.
JSE:ACL
by PDSnetSA
Our opinion on the current state of MONDIPLC(MNP)Mondi (MNP) is a massive international paper and packaging company that started in South Africa but now has interests in 30 countries and employs 26,000 people at about 100 sites. It has businesses across the full spectrum of packaging and is extremely professionally managed. The company owns and operates forests, produces wood pulp, paper, and plastic films for the production of a wide variety of packaging solutions. Mondi has been impacted by developments in the Ukraine crisis. In an update on 28th February 2022, the company said, "Mondi has operations in Russia, representing around 12% of the Group's revenue by location of production, including a high margin, cost-competitive, integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic)." The company decided to divest itself of all its Russian holdings, which had a net asset value (NAV) of 687 million euros as of 31st December 2021. On 1st July 2022, the company announced that it had completed the sale of its personal care business for 615 million euros. On 12th August 2022, the company announced that it had sold its Russian subsidiary for about R25 billion. This announcement caused the share price to jump. In its results for the six months to 30th June 2024, the company reported revenue down 4% and earnings per share (EPS) down 30%. The company said, "Our underlying EBITDA of €565 million in the first six months, although lower than the comparable period last year, reflected an encouraging performance, supported by improving market conditions resulting in stronger order books and higher sales volumes." In our opinion, Mondi remains a blue-chip company that looks cheap on a price: earnings multiple (P:E) of 12.37; however, there may be further downward potential. Technically, the share was in a strong upward trend after March 2020, which was derailed by the Ukraine situation in March 2022. Since then, it has been moving sideways, but there is evidence now of a new upward trend emerging. We expect that the upward trend will continue as the worldwide switch to online shopping requires more packaging materials. In March 2024, the company announced that it would acquire 54% of LSE-listed DS Smith Plc for GBP5.14 billion.
JSE:MNP
by PDSnetSA
Our opinion on the current state of MPACT(MPT)Mpact (MPT) is a large producer of paper and plastics packaging in Southern Africa. It recycles paper and cardboard and makes corrugated cardboard containers for a variety of industries as well as polystyrene trays for the food industry. It has 20 manufacturing operations, with South African sales accounting for 86% of its business. It employs over 5000 people. The business is impacted by the general level of consumer spending (which has been depressed because of COVID-19 and was improving at least until the advent of the Ukraine crisis) as well as weather considerations which affect the demand for corrugated containers for fruit and other agricultural products, especially in the Cape. Like many businesses in the current environment, Mpact has been working to preserve cash, but it has benefited from a switch to local suppliers during the pandemic. In its results for the year to 31st December 2023, the company reported headline earnings per share (HEPS) up 8% and net asset value up 11.2% at 3363c per share. The company said, "The weak economy, weighed down further by load shedding and other public infrastructure failures, impacted many businesses and consumers who were already struggling because of high interest rates and a prolonged period of high inflation." In a trading statement for the six months to 30th June 2024, the company estimated that HEPS from continuing operations would fall by between 32.5% and 37.8%. The company said, "The Group's operating profit margin for the six-months ended 30 June 2024 decreased from the high levels achieved in the six months ended 30 June 2023 ('prior period'), which benefited from a strong recovery in Paper margins following selling price increases at the end of 2022." The share fell from a high of R51 in April 2016 to levels around R8 in March 2020 but has since recovered to 2970c. At the current level, it is on an earnings multiple of 5.8 - which looks cheap. Technically, the share looks like it may be entering a new upward trend but it has been moving sideways since August 2022. On 1st August 2024, the company announced that it had sold its Versapak business for R267.7m.
JSE:MPT
by PDSnetSA
Our opinion on the current state of SEBATA(SEB)Sebata (SEB) is an investment holding company with four divisions: software solutions, water technologies, ICT support services, and consulting. - **Software Solutions Division**: This division includes Sebata, which offers IT services to municipalities and public entities; Freshmark, providing IT solutions to fresh produce providers; and Rdata, an accounting package for the public sector. - **Water Technologies Division**: This consists of Utility Systems, which provides electronic water control and pre-payment devices, and Amanzi Meters, which supplies water meters to the residential market. - **ICT Support Services Division**: This division includes Turrito Networks, which offers telecommunications and managed solutions to SMEs and corporate markets, and Dial-a-Nerd, which provides IT support to SMMEs and professionals. - **Consulting Division**: This division consists of Utility Management Services, which assists municipalities with meter reading and debt management, and Mubesko Africa, which consults to local governments, supplying draft policies and long-term financial planning. Sebata primarily serves a market of municipalities, which is known for being poorly managed and for often failing to pay their debts. In its results for the year ending 31st March 2024, the company reported revenue of R33.1 million, up from R28.7 million in the previous period. Despite the increase in revenue, the company posted a headline loss of 101.62 cents per share, a significant increase from the 14.48 cents loss in the previous period. The value traded in Sebata shares is around R20,000 per day on average, making it impractical for even small investments due to low liquidity. Despite this, the company does have some prospects in the UK, which may provide opportunities for growth in the future.
JSE:SEB
by PDSnetSA
Our opinion on the current state of ALTRON-A(AEL)Allied Electronics Corp, or Altron (AEL), is an information and communications technology company founded by Bill Venter in 1965. The company has been re-focusing on its core business by selling its 80% stake in Powertech and its 100% subsidiary, Altech UEC, a developer of set-top boxes. Powertech was sold to a BEE consortium, and Altron is currently in the process of selling CBI Telecom Cables. Altron operates in six African countries, as well as the UK and Australia. The company announced that it had secured key wins in both the public and private sectors, including the Gauteng Broad Band Network phase 2 contract and FNB's data and analytics contract. Additionally, Netstar, a subsidiary of Altron, won a three-year contract with eThekwini for vehicle tracking of 7,000 vehicles. Bytes, a UK-based subsidiary that has now been unbundled and separately listed on both the London Stock Exchange (LSE) and the JSE, secured a five-year contract for Windows 10 with the NHS (UK). Altron has been restructuring its debt to reduce interest expenses and has resumed paying dividends. The company also acquired Phoenix Software in the UK for R698 million. On 17th December 2020, Altron successfully listed its subsidiary Bytes Technology on the LSE at a price of GBP2.70, unlocking significant value for Altron shareholders, though this resulted in a notable drop in the Altron share price chart. In its results for the year to 29th February 2024, the company reported revenue up 8% and headline earnings per share (HEPS) up 36%. The company also reduced its debt by 44% to R313 million during the period. Altron stated that "Increased cash generation supported by a strong balance sheet allowed us to increase our final dividend per share by 74%." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would rise by at least 20%, citing that "positive momentum has continued into the 2025 financial year ("FY25"), leading to a stronger year-to-date performance in comparison to the Comparative Period, which was negatively impacted by provisions and impairments raised." Technically, the share had been moving sideways between 750c and 1330c from December 2020 until November 2023. It has since entered a new upward trend and has been rising strongly. The share was added to the Winning Shares List on 15th November 2023 at 949c and has since risen to 1720c.
JSE:AEL
by PDSnetSA
Our opinion on the current state of AECI(AFE)AECI (AFE) is a leading producer of chemicals and explosives in South Africa, supplying products for the mining industry, water treatment, animal health, food and beverages, and the industrial sector. The company has a broad international presence, with businesses in Australia, North America, Europe, Asia, and Africa, employing 7,600 people across 22 countries. AECI also has a property division called "Acacia." The company has successfully diversified away from its exposure to South Africa, with only 40% of its total revenue coming from the country. AECI has demonstrated its ability to make acquisitions that boost turnover and profits. However, in its results for the six months to 30th June 2024, the company reported revenue down 4% and headline earnings per share (HEPS) down 57%. The company noted, "Sales volumes of mining chemicals are expected to improve on the back of an anticipated recovery in mining activity in South Africa." On a P/E ratio of 13.39 and a dividend yield (DY) of 0.9%, there is a belief that the share may fall further. Technically, the share has been trending sideways for most of the last ten years, indicating a lack of significant momentum in either direction. Within this broader trend, it appears to be approaching the bottom of a downtrend and may be ready for some recovery.
JSE:AFE
by PDSnetSA
Our opinion on the current state of MERAFE(MRF)This is a ferrochrome operation controlled by Glencore, which operates mines, furnaces, and smelters in Mpumalanga and Limpopo. The Glencore-Merafe joint venture can produce up to 2.3 million tons of ferrochrome per annum. Merafe gets 20.5% of the proceeds, and the balance goes to Glencore. The problem is electricity supply, as smelters require huge amounts of current. The 15.6% increase in Eskom tariffs last year was a major factor, and the current year's increase of just under 10% from 1st April 2022 is a further problem. The company is concerned about Eskom's ability to supply additional power for expansion. Their Lion 3 expansion has accordingly been suspended until this difficulty can be overcome. All smelters except Lydenburg are operating. The availability of trains from Transnet to move its product is another problem. In its results for the year to 31st December 2023, the company reported revenue up 16% and headline earnings per share (HEPS) of 60.1c compared with 56.4c in the previous period. The company said, "Merafe achieved a record profit of R1 753 million despite a challenging economic environment. Demand for ferrochrome was weaker compared to prior years, which resulted in lower sales volumes and lower realised prices, whilst chrome ore sales volumes were significantly elevated and realised prices increased due to buoyant demand and supply constraints." Obviously, this is a commodity share and has risks, but the world's demand for stainless steel did increase with the economic boom in America, which now appears to be coming to an end. In a production update for the six months to 30th June 2024, the company reported ferrochrome production down 17% due to the Rustenburg smelter being out of operation. The company estimated that HEPS would fall by between 23% and 43%. Technically, the share reached a high of 192c on 4th April 2022 and was trending down until a rally in September 2022. It found some brief support at 104c per share and trended up, but the rally was short-lived. It remains a volatile commodity share.
JSE:MRF
by PDSnetSA
Our opinion on the current state of WOOLIES(WHL)The sad fall of the Woolworths share (WHL) price was occasioned by the decision of previous CEO, Ian Moir, and his board to buy David Jones in Australia for AU$2.1bn, which has now had R12bn written off its original purchase price of R20bn in 2014. The only aspect sustaining the Woolworths group was its food sales. Woollies announced on 14th January 2020 that they had appointed Roy Bagattini, from Levi Strauss, to replace Ian Moir as Group CEO with effect from 17th February 2020. Woolies' fashion and clothing section was also not doing that well in a very difficult trading environment. In its results for the six months to 24th December 2023, the company reported group turnover down 16.7% and headline earnings per share (HEPS) down 31%. The company said, "The Group's results for the first half of the 2024 financial year ('current period' or 'period') are not directly comparable to that of the prior period, given the inclusion of the David Jones contribution in the prior period." In a trading statement for the 53 weeks to 30th June 2024, the company estimated that HEPS would fall by between 27% and 32%—partly because of its disposal of David Jones in Australia. We recommend that you only consider Woolies shares when they break up through its current downward trendline. The current P:E is around 14.21, and the shares are still falling but may be stabilizing.
JSE:WHL
by PDSnetSA
Our opinion on the current state of Pan African Resources (PAN)Pan African Resources (PAN) is a London- and JSE-listed re-treatment gold producer. With its Elikhulu plant, it will be able to produce about 700,000 ounces of gold a year at a cost of about R450,564 per kilogram against a current gold price of close to R1m. This means that over its life, it will produce revenue of approximately R15bn, of which R5.3bn will go back into the economy in the form of mine expenses, creating a highly profitable entity with minimal risks. It will also employ 350 people. The company has approved the construction of a 10MW solar power plant. In its results for the six months to 31st December 2023, the company reported gold production up 6.7% and all-in sustaining costs (AISC) of $1287 per ounce (against a gold price of just over $2000). Headline earnings were up 46.4% and earnings per share (EPS) was up 46.1%. The company said, "Liquidity remains healthy, with access to immediately available cash of US$31.3 million (2022: US$33.9 million) and undrawn facilities of US$86.4 million (2022: US$52.1 million) at the reporting period-end." In an operational update for the year to 30th June 2024, the company reported production up 6.2% with an average gold price of $2021 and all-in sustaining costs of $1350 per ounce. The company said, "Net debt at the end of the Reporting Period increased to US$106.4 million (FY2023: US$22.0 million), mainly attributable to construction costs at the MTR Project." On 4th June 2024, the company announced that it signed a five-year wage deal with the National Union of Mineworkers (NUM) for an increase of 5.3% per annum over the period. Technically, the share has been in an upward trend since its low of 288c in June 2023, and we added it to the Winning Shares List (WSL) on 31st January 2024 at 430c. It has since risen to 673c. We see this as a good operation but volatile, which means considerable risk. We would advise investors to be cautious, but with the gold price having broken convincingly above long-term resistance at $2060, it could be a good speculation.
JSE:PAN
by PDSnetSA
Our opinion on the current state of BOWCALF(BCF)Bowler Metcalf (BCF) is a plastics manufacturing company that began in 1972 and listed on the JSE in 1987. The company's products include tube manufacture, printing, injection stretch blow-moulding, foiling, and extrusion blow-moulding. This is a company which is clearly badly impacted by loadshedding. In its results for the six months to 31st December 2023, the company reported revenue up 21% and headline earnings up 52%. The company's net asset value (NAV) was up 8% at 761,7c per share. The company said, "During the first six months of the previous financial year, the operations of the Packaging Segment, as well as customer operations, were severely impacted by an unstable and unreliable electricity supply. Supply chains were significantly interrupted." In a trading statement for the year to 30th June 2024, the company estimated that HEPS would increase by between 42,5% and 62,5%. Technically, the share has been in a gradual upward trend for many years. It is quite cyclical and fairly thinly traded, with many trading days on which no shares change hands, which tends to limit institutional involvement. The company is on an undemanding P:E of 9,68 and a dividend yield (DY) of 3,14%. Following the sale of Softbev, it has a strong balance sheet and cash for possible acquisitions. It should perform in line with the South African economy going forward, but it is a difficult industry with significant working capital requirements. Fortunately, the company has a significant cash pile with minimal debt. It has also been buying its own shares back - which makes the share's liquidity worse than it already is but should push up its net asset value (NAV). We see this as a relatively solid, unexciting, long-term investment - but relatively thinly traded.
JSE:BCF
by PDSnetSA
Our opinion on the current state of GEMFIELDS(GML)The Gemfields Group (GML) (previously Palinghurst Group) is a mining group that has two major projects: (1) Kagem, the world's largest producer of emeralds (in Zambia) and rubies (at Montepuez in Mozambique); (2) Jupiter Mines, a South African producer of manganese. The group is led by Brian Gilbertson, previously the CEO of BHP Billiton. Gilbertson identified that the semi-precious stones market was under-developed and offered an opportunity for consolidation and professional management - hence the Gemfields' operation. Jupiter was listed on the Australian Stock Exchange (ASX) in April of 2018 and in the process, Gemfields disposed of 60% of that company in line with its decision to cease being a diversified mining company and to focus purely on gemstones. The share is fairly well-traded with approximately R,5m worth of shares changing hands on average every day. Like all commodity shares, it is risky and its fortunes depend on the prices of emeralds and rubies on the international market - as well as the risks associated with mining in third-world countries. It appears to have found a niche for itself where there is very limited competition, and it should do well as the world economy recovers. On 24th October 2022, the company announced that operations have resumed at MRM and key personnel had returned following an insurgent attack on a mine about 12km away on 20th October 2022. On 7th August 2023, the company announced that it would construct a new processing plant that would triple its output from the Montepuez ruby mine. In its results for the year to 31st December 2023, the company reported revenue down 23% and a headline loss of 0,9c (US) compared with a profit of 4,8c. The company said, "The Group’s financial performance was impacted in the year by the withdrawal of November 2023’s higher-quality emerald auction and an unrealised write-down of Gemfields’ non-core 6.54% equity holding in Sedibelo Resources, the platinum group metals mining company." In an update on the six months to 30th June 2024, the company reported total auction revenues of $121m and a net debt position of $44.4m. The company said, "Construction of MRM's second processing plant remains on budget and on track for completion by end of H1 2025." Technically, the share rose off an island formation and entered a strong new upward trend which lasted until July 2023 when the trendline was broken. We recommend waiting until the downward trendline is broken - which has not yet happened. On 11th June 2024, the company announced the appointment of Bruce Cleaver as Chairman. In a report on 19th June 2024, the company said that in June 2024 auctions, it had sold $68,7m worth of rubies at an average price of $316,95 per carat.
JSE:GML
by PDSnetSA
Our opinion on the current state of SEAHARVST(SHG)Sea Harvest (SHG) is South Africa's most popular frozen fish brand with about 38% of the market. It is controlled by Brimstone, which has a 54.92% stake. Sea Harvest catches, processes, and freezes fish for local and export consumption. They acquired the business of Viking, which began 40 years ago and now employs 1600 people with a fleet of 30 vessels operating in Cape Town, Durban, Hout Bay, Mossel Bay, and Maputo. Viking catches, processes, and sells horse mackerel, hake, pilchards, anchovy, prawns, tuna, and rock lobster. As part of this deal, they have also acquired 50% of Viking's aquaculture business, which is one of the largest in South Africa. The cost was a total of R565m, of which R315m was paid in cash and the balance through the issue of 19.2m Sea Harvest shares. Sea Harvest announced the acquisition of the Ladismith Cheese Company for R527m. This company produces cheese, butter, and related products and signals Sea Harvest's intention to diversify away from the fishing industry. The price paid seems quite high since it is based on Ladismith's R58m after-tax profit for the year to January 2018. On 8th March 2023, the company announced that it was increasing its stake in Viking Aquaculture to 82% for R210m. In its results for the year to 31st December 2023, the company reported revenue up 6% and headline earnings per share (HEPS) down 5%. The company's net asset value (NAV) rose 7% to 1216c per share. The company said, "The Group's performance benefited from strong demand across all markets and channels and improved pricing while its 43% hard currency exposure allowed it to benefit from the weaker rand. Performance, however, was constrained by lower volumes as a result of difficult fishing conditions, above-inflation cost increases, load shedding, and prawn prices under severe pressure globally." In a trading statement for the six months to 30th June 2024, the company estimated that HEPS would increase by between 13% and 18%. The company said, "The South African fishing business was challenged by continued low catch rates resulting in lower sales volumes, however, this was offset by strong demand in all markets and channels resulting in firm pricing." The Sea Harvest share is fairly volatile with reasonable volume traded. From its listing in March 2017, the share has moved mostly sideways with a downward trend since June 2022. Obviously, the Viking acquisition has changed the nature of this business substantially, but it remains subject to the weather (which affects the catch) and the regulatory environment (where quotas can be changed by the government). In our view, given the volatility, the share remains fairly fully priced. On 15th May 2024, the company announced that the acquisition of 100% of Terrasan has received approval from the Competition Tribunal.
JSE:SHG
by PDSnetSA
Our opinion on the current state of SEBATA(SEB)Sebata (SEB) is an investment holding company with four divisions: software solutions, water technologies, ICT support services, and consulting. Their software solutions division consists of Sebata, which offers IT services to municipalities and public entities; Freshmark, which provides IT solutions to fresh produce providers; and Rdata, which offers an accounting package for the public sector. The water technologies division consists of Utility Systems, which provides electronic water control and pre-payment devices, and Amanzi Meters, which supplies water meters to the residential market. The ICT support services division includes Turrito Networks, which provides telecommunications and managed solutions to the SME and corporate market, and Dial-a-Nerd, which provides IT support to SMMEs and professionals. The consulting division consists of Utility Management Services, which assists municipalities with meter reading and debt management, and Mubesko Africa, which consults to local government supplying draft policies and long-term financial planning. Its market, which consisted primarily of municipalities, is renowned for being badly managed and for failing to pay their debts. In its results for the six months to 30th September 2023, the company reported revenue down 2,07% and a headline loss of 9,91c per share compared with a loss of 5,27c in the previous period. The company said, "Trading conditions in which the group operates remain arduous. These conditions have been exacerbated by the slowdown in the local economy and resultant slowdown in the spend of local authorities, specifically within the water sector. Local authorities are under pressure, with many being entirely dependent on funding from National Government in order to operate." In a trading statement for the year to 31st March 2024, the company estimated that it would make a headline loss of between 100,75c and 103,65c compared with a loss of 14,48c in the previous year. The value traded in the share is less than R5 000 per day on average, which makes it impractical even for a small investment. Clearly, it does have some prospects in the UK.
JSE:SEB
by PDSnetSA
Will SASOL's market price make a Market Structure Shift?Support and Resistance Levels: All-Time Low: At 2,110c Highlighted Support Zones: Around 12,000c — 13,000c (Green shaded zone) — This has been tested multiple times, indicating a strong support level. Around 10,900c(Recent support zone marked as LL) — Recently established support zone. Highlighted Resistance Zones: Around 15,700c — 16,000c (Red shaded zone near recent highs) — This has been tested, indicating a strong resistance level. Recent peak and major level at around 43,600c Descending Trend Line: Connecting lower highs (LH) from mid-2021 onwards. Potential Reversal: Indicated by the recent break of the descending trend line. Lower Highs (LH) and Lower Lows (LL): Lower Highs (LH): Indicate a bearish trend in the long term, showing that the price is making lower highs over time. Lower Lows (LL): Indicate continued bearish sentiment as lows are lower than previous lows, supporting the trendline. Current Price Action: Current Price: Around 14,900c, showing a significant positive movement (+1,255c or +9.20%). Price Consolidation: The price is consolidating between the support level of 12,000c and the resistance level of 16,000c. Trend Reversal: The recent break above the descending trend line suggests a potential reversal in the long-term bearish trend. Potential Scenarios: Bullish Scenario: Break Above Resistance: If the price breaks above the resistance zone around 16,000c and sustains above it, it could aim for the next resistance level near the 24,600c mark. Continued Lower Highs and Lower Lows: The price making higher highs and higher lows would confirm the bullish trend reversal. Bearish Scenario: Failing to Hold Support: If the price fails to hold the current support around 12,000c and breaks below it, it might test lower support levels around 11,000c or even lower. Resumption of Downtrend: A break below the recent support could signal a continuation of the bearish trend or a more extended correction phase. Sideways Movement: Price Consolidation: The price might continue to consolidate between 12,000c and 16,000c, forming a range-bound movement until a clear breakout direction is established.
JSE:SOL
by PhinduloMakhado