Performance review on Naspers' share price
Some basic information about Naspers
Naspers is a global internet group and one the largest technology investors in the world. Naspers share price is quoted and traded on the Johannesburg Stock Exchange. Stock market ticker NPN.
Naspers is a popular traded stock in the South African region.
The rise and fall of Naspers share price
Like a lot of technology stocks, Naspers share price outperformed during the COVID-19 lockdown period with the stock reaching a high of 388800 in January 2021. This was driven by consumers being locked down and craving digital first technology for entertainment.
So why the decline? Is this selloff a broad-based decline in technology stock or is Naspers share price taking the brunt of the fall?
A look from a technical perspective
The MSCI World Information Technology Index tracks large and mid-cap technology companies’ performance from 23 developed markets (orange line). Although this broader technology index started its decline later, in October 2021, there is clear a correlation with Naspers share price. Technology stocks have seen a small period of increased value over the last few months.
Figure 1 Trading View NPN versus MSCI
NPN weekly price chart
After the initial selloff from January to August 2021, NPN share price saw a period of consolidation. From a technical analysis approach, this could be seen as a bearish flag formation. A break of the trend channel low, on the week 14th February, fell short of achieving its measure move target of 121100.
Figure 2 Trading View NPN Flag formation
NPN daily price chart
A surprise Earnings Report on the 27th of June resulted in a jump in the NPN share price from 191276 to 244500, leaving a gap or window open. Gaps and windows tend to be closed.
Figure 2 Trading View NPN Earnings report gap open
NPN monthly price chart
The strong upward move on the week 1st of June has resulted in Marabuzo support at 202435. This is a technical support level taken from the middle of a strong bullish or bearish candle. This area has been pivotal in 2017 and 2019. It should also be noted that the area is central with regards to the gap/window left open.
Figure 2 Trading View NPN Marabuzo support
For more information on technical analysis, click on the following link.
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