DISCOVERY - Hitting resistance level 4HR- Shorts are favoured while price stays below R116 ... JSE:DSY
DSY trade ideas
$JSEDSY - Still below horizontal supportDiscovery looking like it is possibly consolidating at these levels, but will remain on the sidelines until such time it breaks to the upside (horizontal resistance above)
Discovery BearishThe chart is oversold on the short time frame and could bounce back a little with the previous resistance acting as a resistance again. In the longer time frame of the chart, Discovery is bearish dropping below all Fibonacci levels and breaking below key support levels, I expect it to go lower before bottoming out completely.
$JSEDSY Discovery. Hitting support and bouncingI think a 120 target could be on the cards. Stick to a stop loss on this one if support doesn't hold in days to come.
$JSEDSY Discovery. Bottom of channelOn a little support and at the bottom of this multi month channel. Will it bounce or break. We wait for some bullish\bearish candles......
DSY - Disastrous..We may derive the following from the Weekly DSY chart:
1. Price went the absolute bearish route (See linked idea).
2. Keep holding short.
3. Wait for price to reach the support zone (purple box).
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
Top5 oversold/overbought according to RSI & Discovery LtdFTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Tongaat 12
Murray & Roberts 23
Brait SE 24
Discovery Ltd 26
Dis-Chem 26
Overbought:
Pioneer Foods 90
Zeder 80
Anheuser Busch InBev 76
Sibanye Gold 74
Clover 74
Once one of the top performers on the JSE, Discovery Ltd has been on a slippery downward slope for the past year. The recent break of the bottom of a major symmetrical triangle, does not look good for DSY at all. A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A Breakdown from the lower trendline indicates the start of a new bearish trend.
Both the 50-day and 200-day moving averages are also pointing downward, which clearly concur with the trend not looking healthy at all. The share price however does find itself in extreme oversold territory according to its 14-day RSI. DSY also experience extreme price underperformance against the FTSE/JSE All Share since the beginning of 2019.
Next support level should be around R124, with a break and close below these levels. Most probably looking to test the R109 levels.
Should DSY bounce off current levels and move above the R136 levels again, could see resistance at the 50-ay moving average at R144.
The current consensus target price (according to Thomson Reuters) of R185 now seems like a bit of “wishful thinking”, but then again, stranger things have happened before. Personally, I would do nothing for now and wait for confirmation of the trend.
DSY Bullish reversal possibilityJSE:DSY formed a bullish engulfing pattern at a support level, but is yet to confirm. If it breaks and closes above the level of the engulfing candle, it could possibly go long.
DSY - The Squeeze We may derive the following from the Weekly DSY chart:
1. Price has respected the weekly downtrend resistance.
2. It also has a longer term bullish trend intact.
3. Price is narrowing in.
4. I would wait for a confirmation of the trend direction before taking any new buys/sells. Patience is key here.
5. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
Discovery pulling a wedgy...Discovery has had three failed attempts to break above the 200 day moving average which also coincides with the downward trend resistance line.
It does look to be forming a falling wedge which means we could see a potential move from current levels down to the support zone of around R138.00/R140.00. I am looking to short the next bounce (possibly around R151.00).
Looking at momentum, the stochastic RSI looking very weak as we approach over-sold levels...bear in mind that prices can remain over-sold for an extended period of time.
JSE:DSY - Selling Pressure Increasing
Weekly CCI broke 100
Daily CCI approaching 0 downward
Bearish Marabuzo on the Weekly
Bearish Engulfing on the Daily
$JSEDSY Discovery - chart structure bearish *see analysis belowSimilar to the MTN analysis (but on the opposite side), i want to use this as a good example of a bearish technical structure. It is clearly evident on the Discovery chart that every attempt to rally is met with a lower swing high & the counter is also able to post new swing lows on the downturns. I have only showed the 50 and 200 day moving averages for clarity purposes, but if you had to bring up all the major moving averages, one can also clearly see that the moving averages are pointing down with the short term averages crossing below the longer term averages. In my opinion this is the type of chart structure where you would be looking to adopt an approach of shorting the rallies, rather than trying to pick the bottoms for a bounce. The balance of probabilities would favor downside in this share. Looking at the fundamentals, two things that concern me (1) the launch of the banking business is proving to be very capital intensive indeed which should depress earnings at least for the next little while.. (2) we have seen directors take out protective collar and hedging strategies to protect their share options (not something that exactly instills confidence in the stock). Two levels to monitor for shorting on the rallies are R150 which is the previous peak, and R155 which coincides with a previous peak as well as the declining 200 day moving average. Also watch the current level of R142.60 which is proving tough resistance at the 50day moving average. If one zooms out a bit on the chart and looks at a longer weekly view, it would not surprise me if over time we were to retest the massive horizontal support level at R110.00 which would also coincide with the bottom of the fibonacci channel.
Discovery new Higher High After the Equal lows discovery has printed a higher high
Would be buying a pull back here
$JSEDSY Discovery. Up against resistance "If" resistance holds, 137 could become a target once again.
Discovery's Short Term Distribution Zone Discovery (DSY) 15341c - approaching a level of interest/potential technical distribution zone. At an 18 price earnings ratio, the shares appear elevated however the growth profile would attract the rating. Recently shares have benefit as markets have ticked higher however we have seen director instituting protection structures to limit downside while capping upside gains. Although there has recently been some green shoots, DSY also enters the banking arena along with a number of other players against a backdrop of high unemployment and low business confidence. Technically, we are approaching the downward trend line going back to Sept 2018. Anything above ~ 157 is possibly a short term distribution zone.
DSY Symmetrical triangle and descending resistance breakoutJSE:DSY has broken out of a symmetrical triangle in conjunction with a break out of a descending resistance line.
There is also a fractal that has formed on the top of the candle of the 30th of May.
If it breaks through this level of the fractal, I will consider a long position.
$JSEDSY Discovery. Fake break or break retest ? At resistance. From fake moves comes fast moves. If this turns out to be a fake break we can expect to test of upper resistance. If this turns out to be a retest of current resistance line (previous support), we could reach some bottom targets.
$JSEDSY Discovery. Looking vulnerable at these levelsBreak below 14100 neckline opens 13100 and 12400 targets
