jse:dcp Dischem potential CUP & HANDLE ?Will we see the cup & handle upside?
To support >R22 on Dischem is the recent inverse head & shoulders on Dischem (weekly) that also plays out to >R22
DCP
JSE:DCP DIS-CHEM Effort without ResponseDis-Chem has some effort (Buying volume, negative divergence on the Volume RSI) to get back above 2100. However, the price has been unable to break back to higher levels. A rejection of 2100 on volume points to lower levels and a possible retest of 1600 and could possibly even break this.
JSE:DCP Dis-chem Breaking the Downward StrideDis-chem has been in a downward stride but after a short accumulation with a spring, the trendline was broken. After a backup (BU) it looks like it will break higher and test the yearly pivot point.
Flash note Dis-chem Pharmacies Ltd (DCP)Trade with caution on DCP, warns our Unum Trading Desk analyst Lester Davids!
"The upward price momentum is strong however we trade just above the 200dma as well as at the prior support that was in place from November 2017 to May 2018. We also have an open "gap" at 3525c from the "gap" down on 4-May.
The share now commands a 42 P/E .
I advise caution on any new longs, possible the stock is a pending Short?"
If you want to discuss these trading ideas, contact our Unum Trading Desk on +27 (0)11 3842920 or tradingdesk@unum.co.za
