Short Continuation expectedSPP weekly data shown Double top within a H&S movement
more downside expected.
SPP trade ideas
SPP - Engulfing at SupportJSE:SPP has formed an engulfing candle at a strong support level. We could possibly be looking at an upward move from here
$JSE-SPPJSE:SPP
Testing support in 18000-18100 area.
Break bellow will probably open 16500 as next target.
With second target around 15000.
SPAR - descending channelJSE:SPP is trading in a descending channel and has just bounced off of the top resistance level. We can expect a downward move towards the bottom of the channel or around 17780.
Buy Box on SparJSE:SPP broke out of the bottom of the 'buy box' consolidation area yesterday which normally means a signal to go short, but it seems like a hammer candle is forming which could mean a reversal, so I will remain cautious and only enter a short if it breaks the current low of today's price action.
Descending triangle on SparDespite a positive reaction to its Trading update last week, gains only went as far as the incline resistance around R205
We have now ‘lost’ the 50dma; next is the 200dma which coincides with the horizontal support area around R188-R190.
This is the area to watch for a move lower.
$JSE-SPPJSE:SPP
Made massive inverting hammer on hourly chart today. Many traders rushed to buy yesterday after OK result.
Good place to short in my book with SL =20300
THE SPAR GROUP ; JSEThe pattern gives us a very perfect confluence where the Head And Shoulder pattern formed right at the end of the impulsive 5 Waves up. We also have divergence on wave 3 and 5 confirming the trend correction.
Trade Idea: Spar Group (SPP)A share's prior breakdown level often becomes a distribution zone once the level is re-test. Spar Group, which has rallied back to this level, is also testing it's downward trend line resistance while the last three sessions, by observation of the candle structure suggests 198/202 becoming a distribution zone. while the volume is starting to decline on this 4-day push higher. This is where I think we are setting up a short/sell for a move back down to 189/188.
Short on print back above R200
SL: R205
TP: R188
Trdae Idea: Spar GroupKey Drivers
• Share price under pressure due to the deteriorating SA consumer environment.
• From trading above R220 in March, we now trade near R170.
• SPP is an SA retailer with rand hedge qualities (operates in UK and Europe).
• Approaching technical support, with incline going back March 2014.
• Testing prior breakout level.
• RSI daily chart signals near oversold conditions."
Code SPP
Entry (buy below) R 171.00
Stop-loss R 167.00
Take Profit Target R 182.00
Potential % Return 2.37%
Risk -4.09%
Flash note: spar Group (SPP)According to our Trading Desk analyst, Lester Davids, there is a "srong move out of the inverse H&S however we could encounter some resistance around the R212 level."
Contact the Unum Trading Desk on tradingdesk@unum.co.za for more details.
