Top5 oversold/overbought according to RSI & Anheuser-Busch InbevWelcome back Aspen & Tiger Brands! After some pressure years, they’re both back into “overbought”.
Top 5 Oversold & Overbought currently according to their 14-day RSI’s:
Oversold:
City Lodge Hotels 26
Anheuser Busch Inbev 27
Ascendis Health 28
Nampak 28
PPC 31
Overbought:
Capitec Bank 83
Aspen 75
Tiger Brands 72
Emira Property 70
PSG Group 70
This week I want to spend some time on Anheuser Busch Inbev. What a fall from grace, after some pretty shocking results. Up to end of August ANH was one of the top performing shares on the JSE. But with the recent turn of events, find the trend very much against the share price.
Just before the results was released, the share price broke through the 50-day moving average & found some support at the diagonal support line. Bad results did however not only see the share price break the diagonal support, but also cut through the 200-day moving average like a cold beer on a hot day.
We did however see the share price again find strong support at the horizontal line where ANH found 5 times already this year (at R1155). Should the support hold, could see the share testing the R1200 levels again followed by the 200-day moving average at R1264. This brings us in range with our target price on the company (at around R1300). Read the full report by clicking here: oldoak.co.za
Although the share price finds itself EXTREMELY oversold according to it’s 14-day RSI, the very much downward sloping 50-day moving average isn’t making me feel warm and fussy inside. I don’t currently hold any positions in the company but will monitor it closely (wait for confirmation). Should we see a break below the current horizontal support, will have me monitoring the R1030 levels again, which will place the trend slap-bang back into the parallel channel. This currently would act as my entry point.
