Discovery in good health
Prognosis for Dow also good
WE LOOK AT two largely unrelated charts, both on weekly time frames. The first is local healthcare stock, Discovery, which is currently playing “ catch- up” to the rest of the market. The second chart is a longer- term perspective on the allimportant Dow Jones Industrial Average ( following on from the long- term chart of the JSE all- share index shown in last week’s column). Discovery still has the potential to rise 50% from current levels and is therefore a stock to buy on pullbacks. The chart of the Dow Jones shows plenty more upside over the longer term ( though overbought in the short term), which will provide a positive supporting environment for the JSE.
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