PIK trade ideas
Pick n PayAn update on the related idea dated 29/03 (see attached).
Yesterday, JSE consumer staples showed relative strength versus consumer discretionary.
- PIK (5727c) is breaking to the upside of a 12-month rounding bottom which also includes a smaller inverse head and shoulder as well as a pennant. The 5700c to 5730c level is looking to be cleared and should be held to trigger a buy/long.
- Year-to-date, we the share has made a series of higher lows while the RSI is in a bullish regime with a 62 reading.
- Temporary failure below 5518c
- Target Range: 6180c-6340c
- The share does appear elevated on a fundamental basis (PE of ~24x) however the price action is strong.
JSE:PIK Pick n Pay BackupAfter 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.
PIK - 1D - INVESTMENT STRATEGYPick and Pay is bouncing of major resistance at a level coming all the way from early 2017. Weekly stochastic is still showing overbought position. Although there is a small window to close to the top, i will wait for a pullback to about the R50 level before entering into a position.
#JSEPIK - 2nd Time lucky- After been stopped out in our initial long trade, the stock has gone and closed gap..
- The inverse head and shoulders pattern targets a measure move close to R70 , as long as bulls keep above R52...
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Original idea in link
Pick n Pay - Trading off resistanceA 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.
PICKnPAY - Possible Inverted Head & Shoulders- 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
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
