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NASPERS (JSE: NPN)

March 4, 2024
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Josh Viljoen
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Josh Viljoen

Technical Update

 

Naspers has recently broken below and retested the previous level of support around R2350 a share (see black line on the chart which shows this support level). The price looks set to continue lower in order to close the gap in the chart from late June where the share price jumped from R1900 a share to R2200 a share between trading sessions (see blue circle on chart for gap referred to).

 

The next level of support on the chart is around R1850 a share and I anticipate the share to push lower to this level in the coming weeks. If you are looking to accumulate Naspers shares, R1850 looks like an opportune time to do so at this key level of support. See green rectangle on chart for this next level of support. 

 

Gaps typically occur when a piece of news or an event causes a flood of buyers or sellers into the security. It results in the price opening significantly higher or lower than the previous days closing price. Depending on the kind of gap, it could indicate either the start of a new trend or a reversal of a previous trend.

Gapping occurs when the price of a security or asset opens well above or below the previous days close with no trading activity in between. Partial gapping occurs when the opening price is higher or lower than the previous days close but within the previous days price range. Full gapping occurs when the open is outside of the previous days range. Gapping, especially a full gap, shows a strong shift in sentiment occurred overnight.

 


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