PROSUS - UpdateThe R1323-R1475 zone continues to be a headwind for the bulls (R1405 strong resistance)
Short term Moving averages have flattened as the stock gets ready for the next big leg.
1TY trade ideas
Prosus Dives DeeperTalk about scuba diving. That's what I'm observing here... A good swim under the sea(support).
Prosus went below our predicted rejection level and headed towards the next support area at around 10000. Will be holding positions until we reach a reversal point at that level. If price dips further down that will be our signal to exit and enter again at a lower price. Hopefully recovering all our drawbacks.
Prosus hit our target up at R1,446 now expect downsideTarget hit at R1,446 recently from a larger Cup and Handle.
And since then we had the price go up one more day before entering into a strong sideways range.
During this time it formed an Inv Cup and Handle with a few bearish signals.
21>7 - bearish
Price>200 - Bullish
Target R1,1033
RSI<50 Bearish
WARNING
Even though we expect the price to drop, it's only correcting and equilibrating back to the 200MA elastic mean zone.
Once the price reaches here, there'll be a test between the bulls and bears before a chosen direction is established.
Prosus hit our price target at R1,445 and enters into a bullSince we sent out the trade idea on Prosus, it formed a beautiful Cup and Handle which broke our of the brim level.
7>21>200 Moving averages all looked perfect and RSI was above 50 Green backgrounds all around.
The first target he set was to R1,445.20. WHich it hit last week.
Now unfortunately, there is no other chart pattern that's formed but instead a bull (rising) channel is on the way.
This is where trend traders will ride it on up until the trend breaks.
It doesn't give us breakout traders a good entry level but for others I'm sure they can raise their trailing stops and keep it going.
General Facts:
Prosus is a Netherlands-based investment company (that operates in more than 80 countries) that was created through the spin-off of Tencent's international internet assets.
The company's primary focus is on the technology and internet sector.
You'll find it's listed on the Euronext Amsterdam stock exchange and the Johannesburg Stock Exchange (JSE).
For our analysis we are talking about the one listed on the JSE (South Africa)
Prosus has a market capitalization of over $100 billion and its portfolio includes investments in companies like Naspers, MakeMyTrip, and Delivery Hero.
Prosus also long to R1,445.20 and correlates to Naspers ideaCup and Handle also has formed on Prosus with the Moving averages looking strong with 7>21>200
Target R1,445.20.
There is a strong correlation with Naspers which is showing almost identical charts.
The RSI has also broken above the Negative divergence and is in the upward momentum territory >50.
The only concern as I often mention are the gaps in the charts which shows high volatility and potential for Gaps close.
The bias however is bullish.
Prosus (PRX) Intermediate DeclinePrice action in Prosus shows it in intermediate phase of decline with a low targeting late November to mid-December. It presents an attractive short with price set to go below the pink inclining trendline. When price makes a swing low after hitting the trendline would be time to close shorts and go long.
Risk: Price closing above the green trendline on a weekly basis would be the stop-loss. So it would make sense to add shorts if price is rejected at that point.
PRX, closing the gap?JSE:NPN & JSE:PRX traded above the 200 dMA mid-June, bringing a glimpse of hope. A decent move it was for Naspers (the move resulted in a profitable position, in a tough market, sibonga noma yini) but Prosus is now below the level and there's a gap that might be filled. Naspers is still above the MA, but for how long?
PROSUS - Update As posted in the previous post, the 50 day remains an important level for bulls to capture for a chance to turn this short term downtrend around.
Looking for a possible second day close above 50 day
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
PROSUS - Testing 50 day moving average - Prosus is currently resting above its 50 day moving average
- Bulls will want to hold it above R789 to have a chance of breaking through overhead resistance
- Failure below will open a leg back into range
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
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