ShopriteBull flag break on Shoprite points to 250; but would wait for a slight pullback before initiating a 'Long'.
SRGHY trade ideas
Shoprite breakout of Reverse C&H target R254.00Reverse Cup and Handle formed on Shoprite.
Strong buying led to a high inclined formation, showing demand is stronger than supply.
Other indicators confirm upside.
7>21
Price >200
RSI>50
Target R254.00
$JSESHP - Shoprite: Off Like A Rocket, Buy The DipsThe last coverage of Shoprite was on 01/02/2023, link below.
Shoprite traded a lot lower since the initial coverage but has caught a massive bid since 31 May.
I have yet to dive deep into what could have triggered the buying but the technical picture has become clearer.
The stock has made a large, sideways Flat pattern from the wave (3) peak of 24723.
From 24723 to 19342 the share made a zigzag pattern for wave A.
From 19342 to 25490, this was a more simple yet larger zigzag pattern for wave B.
From 25490 to 19165, the move unfolded as a five wave ending diagonal for wave C, terminating just below wave A.
The bulls seem to be in control now and the short-term price target is 25490.
Buy the dip but looking at the momentum, the dips might be shallow and short in duration.
Shoprite still showing downside despite the bounceHead and Shoulders formed on SHP.
It broke below the neckline and now its been coming down on the downtrend.
We can expect the bounce up, before the downside.
200>21>7 - Bearish
RSI<50
Target R177.11
CONCERNS: The JSE ALSI is setting itself for upside due to the Symmetrical Triangle.
This might cause a disturbance in shorts with retailers but right now the bias remains short.
UPDATE Shoprite short playing along nicely thanks to the rand Since the last trade update, SHP has been on a strong trajectory down.
It formed a large Head and Shoulders on the daily chart which then the price broke below the neckline.
We had other indicators confirming downside including:
200>21>7 - Bearish
RSI<50
The target remains at R177.11
With fundamentals, I don't have much to say except the negative effect that the weakening rand could be putting pressure on Shoprite.
There are a couple of reasons for the price to drop when the ZAR gets weaker including:
Higher Import Costs
A weakening rand means it's worth less compared to other currencies.
If Shoprite imports goods from other countries, it would have to spend more rands to buy the same amount of goods.
This increase in costs could decrease profits, which in turn could cause the share price to drop if investors expect lower future profits.
Inflation Pressure:
A falling rand can lead to inflation as the cost of imported goods rise. Even the Finance Ghost just spent R70 on a Sausage Roll in Cape Town! That's crazy!
High inflation can erode consumers' purchasing power, potentially leading to a decrease in consumer spending.
Shoprite, as a major retailer, could be adversely affected by this trend, leading to a drop in its revenues and, consequently, its share price.
Economic Uncertainty:
Currency depreciation often reflects broader economic instability or uncertainty.
This can lead to decreased investor confidence not only in the rand but also in South African companies, including Shoprite.
This lower confidence can result in selling pressure on Shoprite shares, leading to a fall in its share price.
SHP Inverted HS pattern Long IdeaSHP on its 60min chart has form an inverted head and shoulders pattern over the last 10 trading days, A solid close above R205.00 will confirm the breakup which open targets up to R214.00 area
UPDATE - Shoprite still showing downside despite positive moodHead and Shoulders formed on SHP and the price broke below the neckline.
We were hesitant with this analysis as world markets showed bullishness to come.
But charts are charts and they never lie.
Therefore we should follow the trend than try go against it.
200>21>7 - Bearish
RSI<50
Target R177.11
Shoprite on support what we can see SHP is testing a trendling which was previous resistance which could now act as support. For entry i would wait for bullish confirmation on the daily close or wait for a weekly close above the support
SHOPRITE - Area of InterestShoprite has been weighed down together with many other retailers due to the ongoing electricity load shedding.
Price has returned to an area of previous support so will be important to see how it reacts in the R205-R210 zone.
Dare i say it but there is an ominous head and shoulders pattern above ...
Shoprite showing strong downside to come to R177.11Head and Shoulders has formed on Shoprite and the price has broken below the neckline.
200>21>7 - Bearish
RSI<50
Target R177.11
CONCERNS:
I don't like shorting strong companies generally especially when the JSE ALSI 40 is on a strong uptrend.
Revenue growth is up 17.20%
Net income Growth is up 14.70%
Average annual Revenue growth (15yr) up 11.08%
Net Margin is 3%
but ROE is -24.97%.
So it's unusual to see downside for this retail giant. But anyways, charts are charts and we have a plan in place.
Shoprite Downtrend Meeting ResistanceShoprite $JSESHP has been in a downtrend on the weekly chart, if it breaks below R138 the next stop could be R128 where there is some support.
SHP short term channel breakupSHP has held its lateral support off the R210.00 level and has now broken up out of its short term bearish channel which projects a possible upside target to R234.00
Don't ignore bearish signals Shoprite is head and shoulder the Greatest retailer in the content. But never let that make you ignore bearish signals. Things that go lower can go even lower. Its not a question of cheap or expensive
Shoprite- Worth a nibble...We have finally got our pull-back! the stock has come down to meet the trend line. The trick now is to wait to see if it holds... It is getting a little over-sold but it still remains bearish according to the momentum indicators. If the price can stay above this trend line, I think it's worth a nibble for a small bounce back to the 50 day moving average which gets us to about R240.00. keep the stop loss just below that trend line and you should be good!
ShopriteBreak of trendline support on Shoprite could fuel further downside, and target around 214 in the short term.
Shoprite showing something unusual - Target R189.75W Formation has formed on Shoprite.
The strangest thing is that the 200MA is actually the Neckline of the pattern.
so if the price breaks below the 200MA, all Heck is going to break loose.
There are other bearish signs like
21>7>200 RSI<50
Bearish bias
My first target is R189.75.
CONCERNS:
We haven't had a break of structure yet. This means, the position will remain neutral until it does.
Shoprite - Buy ZoneSHP looks good at current levels and is currently trading in a buy zone. Retailers are coming under pressure as trading updates are released, but if blue TL holds, SHP can move to an initial TP of around 246.90 with an extended target of 254.00. Stop loss on a close below TL support (blue)
SHOPRITE - Area of InterestImportant level for bulls to hold on Shoprite after releasing their operational update.
A daily below R235 opens a possible test of the 200dma .
$JSESHP - Shoprite: Fully Valued Or More Upside?Shoprite released a very good Operational update for the six months ended 1 January 2023 yesterday, a must read for anyone looking to trade or invest in this stock.
As pleasing as this update was, a look at the charts shows a couple of red flags one must be cognizant of.
The Elliot Wave structure suggests that the stock is trading in wave (5) and so far looks to forming and ending diagonal which is a terminal pattern.
Never one to swear by valuations but I build my own models and reference others too, it is interesting to note the following.
Investing.com Pro has a valuation range of R248,38-260,86 and Yahoo finance has a fair value of R264,00.
With the share price currently trading around R235,00 it is wise to question oneself as to whether or not SHP is almost fully valued by the market?
With that technical and valuation picture in mind, i am neutral SHP even though there could still be more short-term upside to complete wave (5).
Shoprite: Expect a pull-backShoprite is starting to look like it's run out of Steam. We can clearly see the previous two days candle sticks show that intra-day rallies are getting sold. So we have a long upper tail (failed high) followed by a "Doji" candle. This could signal a short term trend change. From these over-bought levels, I wouldn't be surprised to see a pull-back to the 200 day moving average. I think the short trade can be put on here for a target of between R225.00 and R230.00.
SHPOne of the shares from today's report.
Shoprite Holdings (SHP) | The 3-day RSI is at 89, suggesting the share is approaching an ultra short term overbought zone. Note the horizontal level on the daily chart highlighting the share approaching a prior supply zone.
SHOPERITE HOLDINGs LTD (SHP)SHP - Note: After breaking above the resistance level what looked like a double top, the upward movement created a new High. The "area of interest" - is key area acting now as a support.
A Broadening Wedge formation on the technical chart has formed. A Sell/Short may be triggered if the inclined support line is breached. If it finds support it could create new
Target 212.
Note: If the price finds support at the lower trend line we could see a new high high.
