Trading Ideas

Shoprite looking trolley for trolley, beter everyday



$JSESHP looking trolley for trolley, beter everyday by SchalkLouw on TradingView.com

We’ve all seen the latest released SA retail figures and subsequently what it’s done to the local retail company trading updates and financial results. Yes, it’s been bad! But, like my kids always tell their old man: “dad…that’s sooooo last year!!”

I recently published an idea on JSE:WHL (https://www.tradingview.com/chart/WHL/HV…) and still believe that the company should pull themselves out of the woods. The other company that is catching my eye lately, is Shoprite. A nice little Falling Wedge developing, with the share price moving closer to the top of the wedge . $JSESHP is now trading at its 50-day moving average (R175.87), with a break and close above these levels, possibly taking us to the top of the wedge (resistance) at R185. A break above the falling wedge is perceived to be bullish (look for example at Sasol’s recent break – https://www.tradingview.com/chart/SOL/Xx…) and will be monitored closely. Should we break the R185 level, the 200-day moving average becomes my next target at R197.70.

Should we see a pullback, R158 support becomes critical.

Thomson Reuters consensus forecast currently got a R190.42 target price on the share price.

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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