SHP-Shoprite-More downside?I'm seeing a descending triangle pattern in play on the Daily chart. A convincing close below R179/R180 could expose the R165 area.
SHP trade ideas
SHP shortJSE:SHP is looking good for a short position.
The MACD as well as the Stochastic are pointing downwards. The Exponential Moving Averages have also crossed in a downward direction.
We can expect this to continue downward until it reaches support at around the 18000 level.
Cup-and-handle pattern on ShopriteShoprite hasn't had the best year. In March it created a high of R281.90 and then proceeded to crash all the way to R174.50. Interestingly enough however, Shoprite has created a cup-and-handle pattern over the past two months.
This is a common bullish pattern and indicates a change in trend.
If you look at the chart above, you can see how Shoprite formed the "cup" part of the pattern during September and October. This was followed by a slight correction in November which created the "handle".
There is also a clear bullish divergence on the MACD. For this reason I will be going long.
Action: Place a Limit order to BUY at R205 with a Stop Loss set at R190. I will aim to take profit at R220 and R230 respectively.
Margin: 10%
Gearing: 10.00x
Gain: +121.95%
Risk: -73.17%
SHP broken supportChart says it all. I'm looking to short the next bounce. Analysis based on the weekly data. All indicators still pointing lower. Risking 2% of portfolio
JSE_SHP: Wyckoff Shoprite Markup beginning?Following the Wyckoff logic Shoprite is ready to start to be marked up in Phase E. Following a backup to the trading range buyers have stepped in around 20000 to 21000. Looking for a markup to break previous highs.
Trade Idea - Shoprite (SHP)From a fundamental perspective, I see SHP as a buy.
This year has been hard on SA consumers so far. With an increase in tax, SA consumers are left with a lower disposable income. Inflation is going up, so are interest rate. Never the less, food remains a necessity and therefore we remain confident that food remains a good investment in times of financial difficulty.
Shoprite’s internal inflation was at around 7% a year ago before plunging into negative territory on the back of a stronger ZAR and decreasing global soft commodity prices.
Due to the retail nature of SHP, we remain of our perspective that SHP will continue to take market share and accumulate positive returns for investors and any short-term pullback can be seen as a good entry point to go long in the medium to long term.
Here is what we plan to do:
Buy SHP @ 212-214
TP @ R232
SL @ R205
