MarcoOlevano

MarcoOlevano

Motus Holdings (JSE:MTH) is trading within the bounds of a constricting triangle. Triangles are generally continuation patterns which would lead you to believe that perhaps the next move is down, however, there are occasions in extreme circumstances such as these where the stock has moved so aggressively that it could also result in a bottoming pattern. In either...

MarcoOlevano

Keep an eye on Hammersons in the UK (shown chart in London as that is where the primary listing is based - trades on the jse as JSE:HMN. Stock has had 4 months of way above average volume changing hands and the hammer reversal candles in April and May give you the clue that the buyers have fought extremely hard on this one. Spikes in volume like this often lead to...

MarcoOlevano

Nice bullish flag consolidation over the last month which has bumped into the trendline support which formed off the pandemic lows. RSI holding at the 50 level which is often supportive of a bullish trend . A break out of the top of the channel at R178 could see African Rainbow Minerals move to the flag target of R192- R195

MarcoOlevano

With the company working hard to sort out its balance sheet with 2 disposals in recent days, the market might be feeling a little more comfortable regarding their ability to sort out their debt and reduce the loan-to-value ratio. Technically the chart looks good putting in higher lows since bottoming out and the break of the recent horizontal trading channel...

MarcoOlevano

Stock has been consolidating for the better part of 2 months. Not the most liquid stock and sometimes frustrating to trade, but a close above R36 could set this off to the races. Target from what looks like an Inverted Head & Shoulders formation could be a retest of the recent spike highs at R45.

MarcoOlevano

Zooming in on the 1hr chart - we notice that since FirstRand bottomed on the 24th of March, we have formed a trading channel with 3 successive higher lows. This level just above R36 also coincides with a bit of a bullish channel flag which is forming within the larger channel in play. Corporate action would probably explain much of the recent weakness but a nice...

MarcoOlevano

As per observations on the chart, the Spot price of Platinum does not look bad at all and seems to be setting up to break the bear market that we have witnessed over the last decade. Still lots of work to do, but early signs are there as per the chart. Above $1000 and we could then argue that the bull market in platinum has once again began.. The South African...

MarcoOlevano

Known to all, the US markets have outperformed the SA markets for a significant period of time. From a pure charting perspective, the series of higher lows on the macd indicator vs the series of lower lows on the price chart of the pair (SA40 vs.SPX) is indicative of bullish divergence warning of a change in trend where we could start to see the SA40 Index...

MarcoOlevano

Keep an eye on the vix, we saw a pin bar reversal off the 200dma coupled with divergence where the VIX made a new low but RSI made an equal/higher low. If anything, this is giving me a clue that we ought to see some volatility come back to the market. Generally a higher move in the VIX will correspond with a market sell off.

MarcoOlevano

Keep an eye on this one- if history repeats, the 200dma which has acted as strong resistance on any snap-back rally should be a very decent level to enter a short position with a fairly tight stop loss.

MarcoOlevano Updated 

Triangle consolidations are normally continuation patterns in the direction of the preceding trend. I for one doesn't hope this plays out but nevertheless as traders we can't let our emotions get the better of us. Triangle is still in development but one to keep an eye on as we approach the bottom end of the channel. A potential rate cut by the SARB tomorrow could...

MarcoOlevano

The current levels between 47600-48000 on the JSE's TOP40 index was a major area of support in the second half of 2019 before breaking down to low at a level of 33400. If a change of polarity where to take place at current levels you would expect this previous area of support to be respected by the market and possibly turn into resistance. I was quite shocked to...

MarcoOlevano

Keep a close eye on Kumba Iron ore around current levels. Two important inflection points are of interest to me: (1) The stock has been quite sticky around the 200 day moving average (green line) in the recent past. The 200 day moving average often becomes support and resistance for the stock. (as indicated by the green blocks) Currently the stock seems to be...

MarcoOlevano

Sanlam has spent the last couple of weeks consolidating in the form of a bearish rising wedge formation. The move higher off the lows has appeared on lower volume which gives bulls little confidence in this move. Should we manage to see a convincing close below the rising wedge at +- R56.00, this rising wedge could play out with a downside target of R41.50. What...

MarcoOlevano

Coronation 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...

MarcoOlevano

BHP Group in South Africa broke down towards the end of Feb from a rising bullish channel that was in place since early 2016. After breaking down from this channel, the stock dropped a further R100 very rapidly in the space of 2 weeks before bottoming out on high volume. The stock has spent the better part of 4 weeks regaining this massive drop, but i believe this...

MarcoOlevano Updated 

The JSE's listed Property Index (J253) is looking for a bottom here with the formation of an inverted head & shoulders bottoming pattern. After failing and breaking through it's medium term horizontal support level at 450 pts, the index has more than halved. However, as things stand, (and analysed together with the H&S on the SA GOV 10 year bond yield which is...

MarcoOlevano Updated 

TOP40 - Trendline from 2003 + 50%fib retracement - i think market can put in a bit of a bounce here.. possibly a little to much too fast?