Trading Ideas

Anglo American – Oversold

Long Top5 oversold/overbought according to RSI & Anglo American by SchalkLouw on

Spending some time on Anglo American. This remains one of my favourite mining house. Lately, it did however find itself in an extreme overbought environment, which was “corrected” in one big swoop. For the first time since November last year, the share price is now extremely oversold according to its 14-day RSI .

Any further weakness should see first support at around R334, with the 200-day Moving Average (at R328.50) being a strong support level . If I was a short-term trader, I would most probably use this as my stop-loss level.

We however saw similar price movements in November 2018, which was followed by an equally strong recovery. Should we see a bounce off these oversold levels, could see $JSEAGL test the 50-day moving average at R382.

Thomson Reuters consensus still got a R394 target price on Anglo’s.

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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