TECHNICAL ANALYSIS: Naspers-N - a recent breakout | Fin24
 
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TECHNICAL ANALYSIS: Naspers-N - a recent breakout

Jan 31 2019 19:52
Colin Abrams*

Naspers-N, the largest stock (by far) in the JSE Top-40 index has given a recent upside breakout.

This is potentially good news for the JSE as a whole, and potentially even for emerging markets.

Recommendation: Buy

Current Trend: Short- and med-term up. Long-term sideways.

Strategy: Buy a close above R3 050.

Chart Setup: Naspers recently broke out above line 2 resistance at R3 020.00, which was a very bullish development for it. It has pulled back over the past week to retest that breakout level, and is now looking ready to move up again.

- Tencent, listed in Hong Long, in which Naspers owns a large stake, has also broken out of a large bullish reversal chart pattern itself.Strategy

Details: Buy Naspers-N on a closing price above R3 050, which is above short-term resistance.

Target: Its first target is R3 300, based on the height of a channel formed by lines 1 and 2, projected up. Take some trading profits there, but expect it to make its way higher eventually to line 3 at R3 615.

Stop-loss: A close below R2 945 initially. It is to be tightened a lot as it eventually nears line 3 at R3 615.

naspers shares

* Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

** Fin24 is part of Media24 which is part of Naspers.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.


naspers  |  equities  |  markets
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