The JSE heavy weight Naspers has pulled backed after it rallied over 50% from its 2018 low. The pull back is due to a global market sell-off sparked by President Trump escalating the Trade war and ‘kicking out’ Huawei.

Below is a chart of Naspers, I’ve included the Fibonacci retracement levels, as traders will be eyeing these levels to build positions. Yesterday’s close was just below the 38.2% level. But with Tencent currently up in Asia, we should see some consolidation around the R3,200 level ahead of a bounce.

Investors should be accumulating shares in NPN in the ‘Buying Zone’ (indicated below in yellow) between R3,000 and R3,300 ahead of the Euronext Amsterdam listing later this year. As Naspers nears the listing of its offshore businesses, we should see a gradual decrease in its discount net asset value. This should drive the share above R4,000.










Source: Protrader

 Buy dips in NPN below R3,300, keeping your exposure appropriate, for a move above R4,000 before year end.

Cautious investors should accumulate around the bottom of the indicated buy zone of R3,000.

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The week ahead:

Other Economic data releases of interest…