PIK trade ideas
PICK n PAY - Up against resistance - Retailers have had a decent relief rally of late
- Price is up against the down trendline
- Possible scenario is it sells off from here or consolidates first then weakens
- A close above R70 negates the view (rather use a wider stop loss + smaller position with this current volatility)
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:PIK
JSE STOCKS- PICK N PAY LTDExpecting the stock to maintain it's bearish momentum until it reaches the SR zones beneath.
PIK (Long Term View)Pick n Pay (PIK)
Has breached the 5595c level, opening up 4832c as a first target. Should the first target fail to hold, 3732 comes into play as an extended/stretch target. Watch the monthly chart RSI – it’s looking to break support, which is a negative technical signal.
Earnings Euphoria over for PIKThe earnings provided impetus to drive the price to a price magnet which was the upper boundary of the long descending channel that started in April 2018 but was confirmed around April 2019. This boundary also aligns with the weekly SSA (although SSA is a weak significant zone but it adds to the confluence) and the monthly Kijun (although it is slightly lower but again it adds weight to the thesis). This is a long term trade with 3 profit targets,the 1st two targets are the weekly Kijun and Tenkan. The 3rd target should have been on the lower edge of the channel but i was conservative and put it at a higher high (to the lows of August) round number area,which could be a good price magnet. The stop loss is at a frustrating area due to the massive rejection we had at the close of the week but prudence dictates we should put our stop slightly higher than that last high. So it means we adjust our position sizes to suit that.
Entry: 3 positions at las weeks close 6674
SL: 7018
TP1: 6349
TP2: 6017
TP3: 5600
$JSE-PIKJSE:PIK
Posted results this morning. Chart is consolidating in symmetrical triangle.
PICK N PAY STORES LTD
REVENUE R44.2 BLN VS R42.2 BLN FOR 26 WEEKS TO AUG 26
COMPARABLE TURNOVER WAS R43.1 BLN VS R40.7 BLN FOR 26 WEEKS TO AUG 26 2018
REPORTED DILUTED HEPS 90.61 CENTS FOR 26 WEEKS TO SEPT
INTERIM DIVIDEND UP 9.5% TO 42.80 CENTS PER SHARE JSE:PIK
Pick n Pay looks to have turned the corner in the short term Pick n Pay Stores seems to have built new support at R58. Looks like the price may hold above the R60 level in the short term. And the management team has made great changes which could help the stock build some solid momentum to the upside. JSE:PIK
PIK - Epic Support BounceWe may derive the following from the Weekly PIK chart:
1. Price has bounced off the major support level (purple box). See previous linked idea.
2. Price is now testing the previous support levels (now resistance).
3. Monitor price action and wait for a clear opportunity.
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
PIK - Life Line SupportWe may derive the following from the Weekly PIK chart:
1. Price has absolutely plummeted over the past few weeks.
2. Our last swing low level and major support is approaching.
3. Be weary of buying, but take note - a bid is likely.
4. As always - maintain your risk.
Note: The views provided herein do not constitute financial advice.
COILING I THINK WE FLYI like this set up we are consolidating under Resistance and might see a move up
PIK - Entry Points - Then LongPick n Pay has published solid figures today and stay a Blue chip share to invest in.
Entry Level as indicated above
Top5 oversold/overbought according to RSI & $JSEPIKEnd of week 8Feb19. A week dominated by Resources. FTSE/JSE Allshare ( JSE:J203 ) Top5 oversold/overbought according to 14day RSI indicator as follow:
JSE:OMN 20
JSE:PIK 30
JSE:TON 31
JSE:DCP 31
JSE:VOD 32
JSE:LON 84
JSE:SGL 84
JSE:IMP 84
JSE:KIO 80
JSE:ARI 79
Spending a few minutes on one of the most oversold companies of the week (according to RSI), namely.
Technically if the bottom range hold, R67.50 seems likely, with the 50-day moving average as next target.
The company joined other SA Retailers, with some serious selling pressure, as the sluggish local economy hitting most consumers in the final quarter of 2018. Fundamentally the company don’t look too bad though and might just justify a short-term stab:
$JSEPIK Intl Emerging Market Peers
Forward PE 17.87 23.06
Forward PEG 0.97 1.84
Forward EV/EBITDA 9.01 13.10
Personally, I still prefer JSE:SHP in this sector. Just tick a few more boxes for now.
UpdatePIK up 3.7% this morning after delivering a solid set of interim statemetns.
reported revenue for the H1 of R42.3bn(+6.4%)
Group turnover up 6.4%, with like-for-like turnover up 3.8%...
Volume growth of 3.5% and market share gains over six months...
1H gross profit margin 18.6% (18.6%) internal inflation held at 0.3% against CPI food of 3.5%...
1H trading profit R631.8m (+5.5%)...
Interim dividend per share 0.391 rand (+17.1%)...
1H net income R489m ... 1H turnover R41.2bn...
Strong earnings contribution from South African operations - with trading profit up 11.9% and profit before tax (before capital items) up 16.7%...
Rest of Africa division delivered profit before tax growth of 7.3%, underpinned by a strong performance from TM Supermarkets in Zimbabwe..
Trading conditions are not expected to ease significantly over the coming months
I would give this share some space before implementing a short bias.
