Coronation stays above the 200 week EMAThe stock broke the 200w EMA. came back to retest it. and stayed above it. Looking good to move higher 51-58 box
CML trade ideas
Coronations continues to break higher Coronation seems to be making up for spending quite some time in the box 3700c - 4400c.. The stock broke to the 4400c - 5100c box and quickly closed into the 5100c-5800c. I’m waiting for a confirmation, a close above the 5263c, then I will add into my position with a stop half way through the 4400c-5100c box.
$JSECML Coronation Fund Managers. Testing channel resistanceCoronation is currently testing the upper resistance level of this channel at 4500. Keep an eye on on this level. If it breaks we could possibly see the share targeting 6000. Wait for the break confirmation before taking a position.
#JSECML - Retesting breakout level - Coronation broke out of a channel consolidation and has come back to test the level...
- Price action is promising and i'm looking for a continued move up from here, possibly to R56.48 - R57.66
- A close below the 200 day moving average will be bearish
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
$JSECML Coronation Fund Managers. Breaking back into channelOn a weekly chart Coronation looks like it's breaking back into the longer term channel of 4900-3600. If it can manage to break out of this channel convincingly then 6000 could become a target. Neutral until then.
Coronation finally breaks out the rangeCoronation has been stuck in the R37 - R44 range for a little over a year now.
Coronation looking good for a breakCoronation looking like it wants to break out. The share has been stuck in the 4442c and 3771c range for a long time. The 30 Week EMA is only 66c away from crossing above the 60w EMA. A close above 4575c confirms the trade.
JSE:CML - Possible short (W)JSE:CML - Looking for a break below 3850 (Weekly close) and 3039 is possible
CML: will the upside price momentum assist the price action?MACD bullish crossover might trigger further upside potential.
$JSECML - Holding supportCoronation holding on for now. Next downside support, should it break to the downside, is around 34.35. Breakout to the upside is a close above 45.60
$JSECML Coronation entering a technical shorting areaCoronation Fund Managers (JSE:CML) held a massive level of horizontal support between R38 and R39 since the early weeks of 2019. After testing this level on numerous occasions, the bears finally got the final break in March this year, which pushed the stock as low as R25.00. Since bottoming out at around R25, the stock has spent the last couple of weeks consolidating these losses only to come back and retest the breakdown level. I fear that the amount of overhead supply waiting to get out above R39 will be just to much for bulls to get an easy win here. I would expect the stock to find resistance at the old support level and start to move lower. First target R33, if things get messy, it could even retest the previous lows at R25. Not a bad risk reward here, as you could try get in as close to R38 as possible, using a stop loss as a close above R39 or R40, and target R33 to take profit.
CML Price at prior support which is now resistance, as well as 61.8% Fibonacci Retracement.
In addition, a breakdown of channel should be monitored for a continuation of the downward trend.
CML CML Coronation Fund Managers | With decline (risk) asset prices, the bigger picture technical setup of CML still appears shaky, with the price knocking on the door of R40 – a level which has held for 16 months (remember, persistence often breaks resistance). Additional risks include, pressure on management and performance fees, stagnant business confidence, country risk and possibly (related to the two aforementioned) ‘Eskom Bailout via Pensions’. The risk with betting on significant further downside on CML is that the current environment is seeing industry consolidation for example Jupiter/Merian, Franklin/Legg Mason and locally RECM/Counterpoint hence CML could also become a takeover target at the right price and you may not want to be caught short in the event that buyers come knocking.
Pairs Trade Idea +CML/-SLMPotential Pairs Trade:
+CML/-SLM
- Recent price leg has not reflected new bullish regime on the RSI.
- Rounding and double bottom
- price above an expanding 8/21/50 EMA's.
Levels:
Current: 0.56
SL: 0.52
Target: 0.70
$JSECML - Currently rangeboundCoronation needs a strong close above R45.60 in order to pursue its secondary TP of R56.50
Stop and smell the flowersCoronation has been on a slippery downward slope since December 2014. The reasons for this have been twofold. Firstly, valuations were extremely stretched (end of 2014), trading at a market capitalization (mkt cap) to Assets Under Management ( AUM ) percentage of close to 7%, while the average international ratio (for global Asset Managers) was trading at around 2%. Secondly, Coronation's growth prospects are questioned in a South African market, which has seen the entry of more competitors and the growth of a passive ( ETF ) market. At the current (mkt cap/AUM) ratio of 2.3%, Coronation is trading at it's cheapest levels in 5 years.
Add into this mix a Forward PE (Source: Thomson Reuters ) of 10.8 times and a Forward DY of 9.2%; then you get an opportunity in my view.
We can clearly see the Descending Triangle in the share price movement that developed since April, which was broken recently. Should we see a break and close above the R39 levels could see the share price seeking resistance only at the 50-day moving average at R41.50. My next target would be the top of the triangle (R44), with a break and close above these levels, being very bullish technivcally.
The share price currently finds itself in extreme oversold according to its 14-day RSI. It has also massively underperformed the $JALSH over rolling 12 month period.
Consensus target price (according to Thomson Reuters ) for Coronation is R41.50 but only covered by one analyst (Avior Capital Markets).
$JSECML WEEKLYCoronation Fund Managers WEEKLY is down on its WEEKLY support. Support seems to be holding but we will have to wait for the week to finish. We also need the overhead DOWN trend resistance to break before we think about taking a position, we continue to monitor
CML - Bid HeldWe may derive the following from the Weekly CML chart:
1. Price has respected our support zone (purple box) (see linked idea).
2. Price should in all probability continue to move higher, but a retest of the support is possible.
3. Monitor price action and wait for a good long opportunity.
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
$JSECML - R38.84 area providing some supportCoronation respecting horizontal support around the R38.84 area and is also coiling in a larger triangle pattern.
