Dis­cov­ery in good health

Prog­no­sis for Dow also good

Finweek English Edition - - Creating wealth - COLIN ABRAMS

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.

Please note: For more rec­om­men­da­tions and charts by the au­thor on shares, stock in­dices, and com­modi­ties, please go to www. the­mar­ket. co. za.

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