Naspers Ltd: A Change In Sentiment

14 June 2018 | Moxima Gama

BOTTOM LINE: NPN has broken out of its corrective bear channel.

(Click image to enlarge)image1

Possible scenario:

After retaining firm support at 285,500cps, NPN formed rising bottoms and has now breached the upper slope of its channel. A positive breakout would be confirmed above 336,500cps, but with the 3W RSI in mega-overbought territory, a near-term pullback is pending.

If NPN should hold above 304,000cps - thus forming the forth rising bottom - a break through 336,500cps could ensue again, with potential upside back to the 414,300cps all-time high.

Alternative scenario:

NPN would resume its bear channel below 304,000cps, and key support at 285,500cps could be breached.



Moxima Gama
Technical Analyst, Sharenet

Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.

Read an interview with Moxima, or discover Moxima’s trading insights via Sharenet’s Technical Analysis Newsletter.

The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.