Shoprite (SHP): Against Strong Resistance
Shoprite price action favours a bearish turn, for the following reasons:
1. The R250 area is strong resistance, many bulls were trapped here in 2018, they will want out.
2. It is late in the weekly cycle so price must find its way to the bottom, for we expect price to go below R223.36 at least.
3. The pink downward slopping trendline is adding to the gravity forcing price downwards.
Within a daily timeframe, Shoprite still has time to attempt another go at R250 level but that would be to trigger stops on some short, the brave will use such opportunities to scale in.
1. The R250 area is strong resistance, many bulls were trapped here in 2018, they will want out.
2. It is late in the weekly cycle so price must find its way to the bottom, for we expect price to go below R223.36 at least.
3. The pink downward slopping trendline is adding to the gravity forcing price downwards.
Within a daily timeframe, Shoprite still has time to attempt another go at R250 level but that would be to trigger stops on some short, the brave will use such opportunities to scale in.
Trade closed manually