Target reached R257.66 from the Inverse Head and Shoulders we pin pointed in July.
The price broke above the neckline and out of the medium downtrend.
We followed the textbook way, and the price shot to the target at R257.66.
It can continue higher. Or it can consolidate.
But either way, we need to wait for the next setup.
Since the last update, Shoprite shot above the neckline of the Inverse Head and Shoulders.
Since then, it's been rocketing to our first target. As long as the JSE ALSI continues its medium term upside and the retailers continue to move up - there is no stopping this one.
Other indicators confirm.
7>21
Price >200
RSI>50
Target remains at R257.00
ABOUT THE...
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...
Head 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
Head 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...
JSE:SHP
With all this strength in the markets $JSESHP can't move higher. Imagine if some weakness come to markets.
Massive head and shoulders in making. Break of neck line will open target around 10600/10800.
After breaking the distribution trading range (TR) we have seen a backup to the TR and now price is breaking lower. This looks like the start of the Phase E markdown. Increased volume on declines and decreased volume on attempts to rally indicates supply overcoming demand and large interests distributing the stock.
Shoprite is making higher lows and have bounced off support while showing hidden bullish divergence. Buy at R136, stop below R132.50 and first profit target at R145.
After a selling climax (SC) in January price has formed a trading range (TR). Currently, the price is ranging defined by the SC and automatic rally (AR). Volume is reducing phase B. Currently the bottom of the range is being tested. Once the test is complete and TR holds the top of the range could be tested. However, it looks like a large base is being formed that...
Shoprite 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...
