Shoprite Analysis
I dont often miss the train but when i do, I regretfully sit and wait for the next one. Here we have shopright which i have been eyeing since beginning of July, my only reason for not catching this train was alarming results from my fundamental analysis which raised so many questions especially when compared with its competitors (except Woolworths). From R 100 a share, Shopright peaked to R 150 after amazing results where shared and a expected we can see the excitement dying down a bit. Looking at a daily chart however it does seem as though the share price is gearing up for a reversal as the recent rally has comfortably broken the hanging downtrend resistance that has been hanging since 2018.
Taking a closer look, we have a support line at R 132 and the share price seems to be respecting the uptrend support as well. If this trajectory continues, we will test the R 150 resistance again. A negative outlook will see the share price test and possibly break the R132 support line as excitement dies down.
Careful to note as-well that there was a gap created recently, and there is a chance as always that the gap would need to be closed.
For now I’m holding out and will probably wait for the next train.
Trade safe and good luck.
Taking a closer look, we have a support line at R 132 and the share price seems to be respecting the uptrend support as well. If this trajectory continues, we will test the R 150 resistance again. A negative outlook will see the share price test and possibly break the R132 support line as excitement dies down.
Careful to note as-well that there was a gap created recently, and there is a chance as always that the gap would need to be closed.
For now I’m holding out and will probably wait for the next train.
Trade safe and good luck.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.