A strong bounce off the bottom of the current range and a golden cross looking likely with the 50MA set to cross above the 200MA. The first target would be the top of the current range at around R57.00, if broken to the upside and held, the second target would be around R64.50. Tight stop loss with a daily close below the current trading range around R49.30.
- Price is settling up nicely above the 200 day moving average and if the general market continues to be buoyant , the inverted head & shoulders pattern could play out.
- A close above neckline at R56.80 would confirm entry, a more aggressive entry will be at this level , stops below R50
- Measured move to R64.10
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Disclaimer: All...
After a distribution trading range that started in 2016, we have seen a markdown of PicknPay. This has resulted in a high volume selling climax (SC) and automatic rally (AR) back to the trading range. Price can be expected to range at these levels before breaking lower to continue the markdown. We will watch the development of the new trading range.
- Retailers have had a decent relief rally of late
- Price is up against the down trendline
- Possible scenario is it sells off from here or consolidates first then weakens
- A close above R70 negates the view (rather use a wider stop loss + smaller position with this current volatility)
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Disclaimer: All ideas are my opinion and...
Pick n Pay (PIK)
Has breached the 5595c level, opening up 4832c as a first target. Should the first target fail to hold, 3732 comes into play as an extended/stretch target. Watch the monthly chart RSI – it’s looking to break support, which is a negative technical signal.
The earnings provided impetus to drive the price to a price magnet which was the upper boundary of the long descending channel that started in April 2018 but was confirmed around April 2019. This boundary also aligns with the weekly SSA (although SSA is a weak significant zone but it adds to the confluence) and the monthly Kijun (although it is slightly lower but...
JSE:PIK
Posted results this morning. Chart is consolidating in symmetrical triangle.
PICK N PAY STORES LTD
REVENUE R44.2 BLN VS R42.2 BLN FOR 26 WEEKS TO AUG 26
COMPARABLE TURNOVER WAS R43.1 BLN VS R40.7 BLN FOR 26 WEEKS TO AUG 26 2018
REPORTED DILUTED HEPS 90.61 CENTS FOR 26 WEEKS TO SEPT
INTERIM DIVIDEND UP 9.5% TO 42.80 CENTS PER SHARE JSE:PIK
Pick n Pay Stores seems to have built new support at R58. Looks like the price may hold above the R60 level in the short term. And the management team has made great changes which could help the stock build some solid momentum to the upside. JSE:PIK
