PEPKOR trendline bounceBased purely on the underlying trend, if it doesn't break through downwards, we could potentially see an upward move on JSE:PPH after bouncing off this trendline.
PPH trade ideas
A bet on PEP to close the gap...and moreAfter the Steinhoff bookbuild (for however many billion), the price gapped down to reflect the transaction but it also pushed the price down to a decent support level. One I never thought we'd see so soon. Looking at the subsequent price action, it does appear that R20.00 is holding as the "new" support. In this light I have bought some with the expectation that we close the technical gap, but I have a feeling we are in for much higher.
Pepkor - Retail Leader But Starting To Appear OverextendedBottom Line: Management Delivers
Short Term: Appears overextended as it approaches the March 2018 and January 2019 swing highs. Also note the negative divergence on both the 7 and 14-day RSI's.
We may see a period of consolidation however one could: wait for the test and turn, then look to short.
PPH 4hr attempting breakout above R16.00Breaking out so far during the open.
waiting for close confirmation
RR 2:1
Pepkor starting too look goodPepker is breaking into higher boxes which is great. the 30w EMA is quite close to crossing the 60w EMA
PEPKOR struggling at historic resistanceJSE:PPH is currently struggling to break through a resistance level that goes all the way back to December 2017. If it doesn't break through and goes down, I will wait for it to break through the support level of around 1450 before entering short.
Ascending Triangle - PPH1. Bollinger bands tightening point towards future volatility – as the firm caters to low income consumers and has performed well despite COVID it is likely that the volatility will be favorable
2. Price is moving within an ascending triangle pattern
3. Stochastic RSI and MACD indicate that the share is oversold, further indicating a favourable entry position
Long:
Price is in all time low territory and has seen a significant decline in response to COVID. In my opinion, the share is oversold and shows upside potential as economic prospects remain weak driving more users towards low income orientated retailers and as the price recovers after the March sell off
Target of 1400 with stop loss @ 800
Feedback welcome
NB This idea is provided as market commentary does not constitute investment advice
Pepkor: All The Signs of a ReversalFundamentally Pepkor (primarily catering to the lower LSM market), should be well positioned to outperform pending their full-year results later in the year. Technically I also like the fact that the diagonal has now been breached on the daily. My end of year price target is at least 14.00 with even more upside from there.
PEPKOR (PPH) DAILY TIMEFRAME SHORTThis market is range-bound and might not be wise to trade. However, we can make much use of the support and resistance theory since price has already broken the 1920 previous resistance-turned support level and is probably heading towards the major 2160 psychological price level. Remember that there is a psychological aspect to round numbers especially when trading support and resistance levels. The major support level for this chart is at 1560 and prices seem to reject each time they approach this zone.
With that being said, I would only consider shorts (sells) around the 2160 resistance level and longs (buys) around the 1560 support level.
More Upside Before The Next Wave DownPepkor Holdings Ltd. is a diversified retail group that has a significant footprint in Africa that is listed on the Johannesburg Stock Exchange. With over 5100 stores in 12 countries, Pepkor is truly a retail giant in Africa. The group has 17 store brands over the retail industry, ranging from affordable quality clothing outlets to high-class furniture outlets. The group supplies an extremely wide range of products over various retail sectors. It is their vision to supply African consumers with all of their basic needs and through their various stores, they are not too far from reaching that goal. Pepkor Holdings owns Incredible Connections, HiFi Corporation, Tekkie Town, Timbercity, Rochester and of course Pep (to name but a few).
Technicals
Looking at the weekly time frame, I am expecting price to break the high of wave 1 before starting wave 4 to the downside.
The H4 chart shows a corrective structure which broke to the upside. This ties in with the weekly view that there is more upside to come.
