SteynTrade

JSE:DCP Dis-chem Breaking the Downward Stride

Long
JSE:DCP   DIS-CHEM PHARMACIES LTD
Dis-chem has been in a downward stride but after a short accumulation with a spring, the trendline was broken. After a backup (BU) it looks like it will break higher and test the yearly pivot point .
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Comments

Hello Steyn,

What are your thoughts on Dis-chem now?
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SteynTrade Matt_Poll
@Matt_Poll, Things for Dis-Chem is not looking good.

After the initial excitement the selling started in 2017 after a buying climax on high volume. And there has been selling all the way down. Every time there was an attempt to rally on good volume the price was unable to make new highs (Wyckoff principle: Effort without Response) indicating selling dominating. The selling has just escalated since falling below R29. The latest selling was done when passing R21. It again tried to rally on some volume but could not break back above it and it looks like we can expect more downside. There are no clear signs of buyers stepping in so for me the only option is down. However, how much downside is there left? It does seem as if there is some slowing in the downward movement and there is a wedge forming. However, there has been no selling climax and the buyers' footprint cant be seen just at the moment. So, for now, I feel safer on the sideline with this one.
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Matt_Poll SteynTrade
@SteynTrade, Thank you for the detailed response. Tend to agree with you on the selling pressure, saw it again today.
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SteynTrade Matt_Poll
@Matt_Poll, I had tried to add a screenshot to the comment I made but see that it is not added. So I have now added the screenshot in the comment below the chart above.
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Matt_Poll SteynTrade
@SteynTrade, That's awesome, really enjoy your work. thanks very much! Seems strange as their fundamentals are not so terrible. However the charts definitely don't lie :- )
Is that your own volume profile you are using or from TV? I've struggled a bit with the TV volume profile trying to set it up right.Thanks again.
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SteynTrade Matt_Poll
@Matt_Poll, Hi Thanks, I coded this. The bars are coloured based on the standard deviation from the mean of a selected number of bars. Think it is called "Colored Volume Bars standard deviation from mean". However, this is an old version of the Pine Editor so probably requires an update and repost but it still works for me.
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