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Long Top5 oversold/overbought according to RSI & $JSEQLT

End of week 15Mar19. Nice little run from Quilter on the back of a weaker $ZAR/GBP ( FX_IDC:GBPZAR ). Impala also continued its run, bringing YTD growth now to 75%. Another newbie in the “runners” list is MultiChoice. FTSE/JSE Allshare ( JSE:J203 ) Top5 oversold/overbought according to 14day RSI indicator as follow:

JSE:DLT 12
JSE:TON 17
JSE:ADH 23
JSE:REB 23
JSE:MNK 24

JSE:QLT 87
JSE:DTC 80
JSE:IMP 80
JSE:MCG 79
JSE:NHM 75

Spending a bit of time on Quilter. Justified run and when you look at the graph compared to the ZAR/GBP, you can clearly see the reason, “why”. QLT now trading very close to its September and all-time highs. The worry I have is that the Rand was under extra pressure lately. Add to that a possible breather in the GBP, QLT could be seen as overbought over the shorter-term.

On the upside, I’m watching the R28 level (stop-loss). Downside however worry me a bit, with a possible pullback eyeing that top of the wedge at R25.25. A break through those levels, only see support at the 50-day moving average at R23. At 87, the 14 day RSI confirm that the share is highly overbought.

According to Thomson Reuters consensus forecasts, analysts got a HOLD on the company and still see possible upside of 7.6% in the share price (expected one year forward)

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