Shoprite looking trolley for trolley, beter everyday

Categories : Trading Ideas

$JSESHP looking trolley for trolley, beter everyday by SchalkLouw on

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 (…) 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 –…) 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.

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