IUE trade ideas
Truworths settings itself for great upside to R69.45Inverse Head and Shoulders has formed with Truworths.
This is definitely not ripe for the picking if we're waiting for this formation to form.
It might even form into something completely different.
But here is my take on it.
The signs are slowly becoming bullish and things are looking good.
7>21
Price<200
RSI>50
Target R69.45
The rand though however needs to find stability and South Africa really needs to clean their act up especially the government. I do have hope. I have faith and I am optimistic. Because SA remains the most beautiful country, with strong possibilities, opportunities and the friendliest people imaginable.
Ok rant over... Luckily we have time for this one to flourish and bloom.
ABOUT THE COMPANY
Truworths International Limited, was founded in 1917 in Cape Town, South Africa.
Truworths operates a portfolio of fashion brands, including Truworths, Identity, Uzzi, LTD, and Earthaddict, catering to different market segments and consumer preferences.
The company primarily focuses on offering clothing, shoes, and accessories for men, women, and children. It covers a wide range of styles, from casual wear to formal attire.
Truworths has a significant presence in South Africa and operates over 700 retail stores across the country. It has also expanded its footprint to other African countries, including Namibia, Botswana, Eswatini, and Zimbabwe.
The company is listed on the Johannesburg Stock Exchange (JSE) and forms part of the JSE Top 40 Index, which comprises the largest publicly traded companies in South Africa.
ABOUT THE NAME
The company was established in 1917 by a partnership between Jack Lewin and his son, Isaac Lewin. Initially, the business was known as "The Alliance Trading Company." However, in 1934, the name was changed to "Trueworths" to better reflect its commitment to providing quality merchandise at affordable prices.
The name "Trueworths" was chosen to convey the idea that customers would find true value and worth in the products offered by the company. The change in name also coincided with a strategic shift in the business, focusing more on clothing and fashion retail rather than general merchandise.
Over time, as the company grew and expanded, the name "Trueworths" evolved to "Truworths," which is the current name of the company. The name change to "Truworths" is believed to have occurred in the 1970s to modernize the brand and align with changing consumer preferences.
$JSETRU - Truworths: Impulsive Move Nearing Its EndA brief update of the previous analysis, link below.
I am looking at the larger sideways structure from 6809 as an expanding flat.
Wave A and B are large, complex three wave moves but wave C is unfolding as a simple impulse.
Wave C is currently in wave ((v)), its final move and I am looking for price reaction either at 4586 or at the lower down-sloping trendline.
TRU: two alternativesTwo alternatives might be unfolding:
Alternative 1:
The price action might approach R1, which is at 5830 and then might extend to the bull target at 6730 (previous high prices).
Stop-loss at 4490.
Alternative 2:
The price action might correct back to 4630. The stop-loss level is at 5830.
A type of rectangle pattern is busy developing.
I favour option 1.
The rectangle pattern is formed when the price of a share trades within a horizontal range, with clear and consistent support and resistance levels.
$JSETRU - Truworths: It Was A Fake Breakout The last analysis on Truworths was on the 20th of January, link below.
The breakout was a fakey and price has crashed back into the consolidation zone and looks to be impulsing to the downside.
The larger price structure is unclear but from 6990 i am counting the crash as a five wave impulse.
A price target to the downside is at the down-sloping support trendline.
Truworths showing downside to R40.21 thanks to Rev Inv C&HReverse Inverse Cup and Handle formed over the last few months.
Then there was a Rising Flag formation, which is a consolidation period before further downside.
We need the price to break below, to get a stronger sell signal to the downside.
MAs = mixed
RSI<50
Target R40.21
SMC
Buy Side Liquidity (Order Block) formed at the TOP of the handle of the Cup. This is where Long traders Bought at these levels, this is where Short Sellers got stopped (had to rebuy). And Smart money came in and swept the buying and sold into it - which pushed the price down.
So I'm quite confident the bias overall is down.
Speculative Idea: Buy TRUThis idea was published on our client platform in the last 15-minutes.
Buy at current levels (or better) for a short term rebound: Retailers have been sold off due to several factors, one being the costs associated with loadshedding (diesel spend). As we move to stage 1-2, sentiment appears to be recovering while the shares have potential developed a short term base. TRU is a part of this thesis, with the shares looking to clear it's 2-week highs. Note the downward trend line being breached and the the MACD printing a positive crossover.
TRADING LEVELS:
Entry: 5389
Target: 5770
Stop-loss: 5150
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TRUWORTHS - Long IDEAThe chart is looking good for a long swing
The MACD has also triggered a buy signal
I will add on successful capture of the 20ma daily
Truworths- Looking "toppy"TRU trading update was not as bad as expected however, Headline earning forward guidance is definitely weaker than expected. This means it's expensive at R66.00.
The technicals show that the price is reaching overhead resistance which I do think will hold. We are in over-bought territory now so I do see the stock pulling back to that all important 200 day moving average.
TRUWORTHS INT (TRU)I have been monitoring TRU's trend since its breakout on January 16th. However, it's important to consider the bigger picture of its price action. TRU has been moving sideways in a clear pattern, with repeated fluctuations around earnings results that typically result in a price decline.
It's possible that this pattern will repeat itself once again?
Truworths crashing after results and new target in play Truworths has formed an M Formation over the last few weeks.
The price broke below the neckline and now it looks like the next target is in play.
21=7 - Changing
Price >200 - Bullish
RSI <50 Bearish
Mixed view with bearish bias.
Also it seems that the market is not appreciating the Truworths $JSETRU 1H 2023 results.
Revenue R11.73 billion, +14% y/y
Net income R1.88 billion, +6.1% y/y
Adjusted EPS R4.874 vs R4.438 y/y
Gross margin 53.5% vs. 53.6% y/y
Interim dividend per share R3.20
I'm bearish right now but with the mixed signals anything can change.
TARGET REACHED - Truworths R68.24Target reached at R68.24
7>21>200 Bullish
Cup and Handle worked and now we'll await the pattern.
RSI >50
Look, the trend is still up and so we'll need to wait for the next setup.
TRUWORTHSTruworths has been trading inside a range for some time a break out is happening with a strong move to the upside
$JSETRU - Truworths: Breakout AlertTruworths has been trading in a wide range, gentle slope downward channel since hitting a peak of R68,09 in August 21.
Price has just broken out of the upper trendline on high volume, 5.63 million shares compared to the 1.48 million 20 day average.
The MACD also looks to gathering momentum above the zero line.
Volume and MACD are just additional factors that add to the conviction but that does not mean this is not a fake breakout so a stop-loss is recommended.
Aggressive traders can use the R60,76 as a stop-loss level.
Update: TRU - Now +7,5% - Bank/Take ProfitUpdate: TRU - Bank/Take Profit - Original Idea Attached.
Out with a Business Update.
At current levels, the buy/long idea is higher by 7,5% (ungeared).
Traders should consider raising their stops to protect capital.
Full target 5673c
Suggested entry was 5246c.
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TRU - Buy/Long IdeaSpeculative trading opportunity. Price attempting to clear medium term downward trend line as well as it's near-term moving averages. In addition, the company has recently started repurchasing it's own shares which may underpin the share price. Preferred at current levels or lower.
TRADING LEVELS:
Entry: 5246
Target: 5673
Stop-loss: 5069
For more research, including trade ideas, get in touch today.
TRUWORTHS - Long IdeaMarkets are experiencing a relief rally off oversold levels and i expect it to continue possibly for the next few days.
TP / SL on the chart.
Rally ContinuesThe stock is in just commenced with wave 5 of (5). I anticipate a further rally to R80 region. The current rally comss after a 335 expanded flat correction at wave (4).
TRU: correcting from extremes?A price action above 5100 supports a bullish trend direction. Crossing below this level will negate the analysis.
Further bullish trend support when the price action remains above 5300.
Consolidation between 5200 and 5400. Crossing above 5400 might target 5800.
Crossing below 5200 will be the first sign of weakness in the price action.
TRUI published the name as a buy/long in January at ~5200c. It went to +6500c. Current setup appears similar but willing to change my mind if the price action/structure changes or deteriorates.
Note: there's also a downside gap at 5113c which may be filled before clearing the downward trend line.
TRU: change in trend direction to bullishA price action above 5750 supports a bullish trend direction.
Crossing below this level will negate the bullish stance.
Upside price momentum supports the bullish trend direction.
RSI leaves enough room for further upside price potential.
MACD crossover confirmed a change in trend direction to bullish.
