Despite a positive reaction to its Trading update last week, gains only went as far as the incline resistance around R205
We have now ‘lost’ the 50dma; next is the 200dma which coincides with the horizontal support area around R188-R190.
This is the area to watch for a move lower.
JSE:SPP
Made massive inverting hammer on hourly chart today. Many traders rushed to buy yesterday after OK result.
Good place to short in my book with SL =20300
The pattern gives us a very perfect confluence where the Head And Shoulder pattern formed right at the end of the impulsive 5 Waves up. We also have divergence on wave 3 and 5 confirming the trend correction.
A share's prior breakdown level often becomes a distribution zone once the level is re-test. Spar Group, which has rallied back to this level, is also testing it's downward trend line resistance while the last three sessions, by observation of the candle structure suggests 198/202 becoming a distribution zone. while the volume is starting to decline on this 4-day...
Key Drivers
• Share price under pressure due to the deteriorating SA consumer environment.
• From trading above R220 in March, we now trade near R170.
• SPP is an SA retailer with rand hedge qualities (operates in UK and Europe).
• Approaching technical support, with incline going back March 2014.
• Testing prior breakout level.
• RSI daily chart signals...
According to our Trading Desk analyst, Lester Davids, there is a "srong move out of the inverse H&S however we could encounter some resistance around the R212 level."
Contact the Unum Trading Desk on tradingdesk@unum.co.za for more details.
