With most people exited about Pepkor's latest acquisition in Brazil, I can't help but notice a bearish Head & Shoulder technical pattern developing on the daily chart; which will be confirmed a break of 2100c support area. Market generally doesn't like acquisitions; could this be an exception?
When they say buy the dip, they mean buy the support line that hold and has held few times before. such is the cash on pepkor
We give a quick recap of markets overnight and the previous day and insights into the day ahead with a few trade ideas on the day. Ideas are strictly NOT INVESTMENT ADVICE.
The stock is back above the the 50 day EMA. Holding the uptrend support with a doji. I will build a position with an initial 1% risk with 52.5 shares
Liking the bounce of Pep of the bottom of the positive channel, could be give a nice up swing, hoping indicators follow.
Based purely on the underlying trend, if it doesn't break through downwards, we could potentially see an upward move on JSE:PPH after bouncing off this trendline.
After the Steinhoff bookbuild (for however many billion), the price gapped down to reflect the transaction but it also pushed the price down to a decent support level. One I never thought we'd see so soon. Looking at the subsequent price action, it does appear that R20.00 is holding as the "new" support. In this light I have bought some with the expectation that...
Bottom Line: Management Delivers Short Term: Appears overextended as it approaches the March 2018 and January 2019 swing highs. Also note the negative divergence on both the 7 and 14-day RSI's. We may see a period of consolidation however one could: wait for the test and turn, then look to short.
JSE:PPH Nice bullish Divergence
Breaking out so far during the open. waiting for close confirmation RR 2:1
Price completed wave 2 at 50% retracement area and currently in wave ii of wave 3.
Pepker is breaking into higher boxes which is great. the 30w EMA is quite close to crossing the 60w EMA
JSE:PPH is currently struggling to break through a resistance level that goes all the way back to December 2017. If it doesn't break through and goes down, I will wait for it to break through the support level of around 1450 before entering short.
1. Bollinger bands tightening point towards future volatility – as the firm caters to low income consumers and has performed well despite COVID it is likely that the volatility will be favorable 2. Price is moving within an ascending triangle pattern 3. Stochastic RSI and MACD indicate that the share is oversold, further indicating a favourable entry...
Fundamentally Pepkor (primarily catering to the lower LSM market), should be well positioned to outperform pending their full-year results later in the year. Technically I also like the fact that the diagonal has now been breached on the daily. My end of year price target is at least 14.00 with even more upside from there.