South African tech giant Naspers Limited (JSE: NPN) has been gaining momentum along with the JSE, which reached new record highs after positive US inflation data spurred a global rally in equity markets. Investors and traders ask what’s next for Naspers and spin-off Prosus as the tech companies navigate a volatile economic environment.
The JSE Top 40 (JSE: J200) reached new record highs on Friday (chart below), as hopes were high that lower US CPI data could see the US Federal Reserve start easing on planned interest rate increases.
Technicals
Looking at Naspers Limited (JSE: NPN), we can see that the momentum started back in October 2022, which drove prices higher to the R2808.33 resistance (red circle). The initial disposal of Tencent shares and the share repurchase program have seen interest return to the tech giant, which has driven up the share price by over 18% in the last month.
The price action has gapped higher over the last week, which could potentially see a retracement in price back to the R3143.11 support as investors start to take some risk off the table. If this support level does not hold, then a possible retracement back to the significant breakout level at R2808.33 a share could be on the cards. For the bull case, if the global sentiment remains optimistic that US rate increases could slow down, the price action could continue to increase to the long-term resistance at R3840.31 a share.
Summary
The price action could possibly retrace to the R3143.11 support before pressing higher as investors add on to their positions. If this level does not hold, we could potentially see another move lower to the significant support level of R2808.33 a share. For long-term investors, the R3840.31 a share resistance level could be of interest as a long-term decision point.
Sources: Naspers Limited, JSE SENS, TradingView.
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