I'm seeing a bearish rising wedge on the MRP daily chart...
At the same time we have just seen a bullish golden cross involving the 50dma and the 200dma....
I'm bearish all the same!
JSE:MRP 's unaudited results came out on the 23rd of November, and the market loved them……up 6.14% on the day.
Since then it has broken up through the resistance line of the ascending triangle.
It might come back down to test the support, but things are looking good for a long position on this instrument. Exit could possibly be around the 27550 level.
I would look to short the short term bounce in MRP.
SA fundamentals still looking bleak for now.
Short term ZAR recovery in my view. Longer term weakness.
Targeting the 50dma @224
Last month (see link below) I was looking at the trading range as redistribution. The pullback was all the way to the resistance line of the trading range forming a Last Point of Supply (LPSY). There has been divergence with the Volume RSI first with a positive divergence with the Upthrust after Distribution (UTAD) and now negative divergence with the UTAD and the...
MR Price (MRP) has declined more than 25% between April and June. After a selling climax and change of character the stock has been in redistribution. The point of control is at the supply line. After two upthrusts (UT) have occurred and effort (as indicated by the OBV) without response in the price there has been a significant signs of weakness (SOW). The change...
MRP has managed to close the previous gap established in June. It is looking a bit "tired" and over-bought now and upward momentum is slowing. Today's weakening of the Rand should put pressure on the stock and be the catalyst for the next move lower. My "projected move indicated on the chart takes the price down to around R226.00 where is meets it's "new" immature...
Lester Davids, our Trading Desk analyst, has sent out a flash note on Mr Price Group.
"Today the price tested resistance right on the 200dma as well as the underside of the prior support level. Has run very hard over the last week however could consolidate around this level."
