$JSEMRP - Mr Price: Remaining Long-term Bullish!
Mr Price released a trading update for the 13 weeks ending 31.12.2022 (Q3'2023) on Friday, 20 January 2022.
As much as the update looked good on the surface, excluding the newly acquired Studio88, the comparable results looked dim.
Load shedding continues wreak havoc on operations and the high inflationary environment coupled with high interest rates and negative real wage growth has resulted in continued financial constraints for consumers.
Credit sales are likely to be hampered in the short-term as there was a reported increase in new credit accounts with subsequently decreased approval rates.
The market clearly did not like the trading update and the share closed the day at -7.28%.
The technical picture is where we see a ray of sunshine.
After the five advance from 9820 to 24225, the consolidation has been well contained in a descending channel.
The price action is clearly choppy which is consistent with corrective price action and the current wave count suggests a combination pattern is unfolding.
In the short-term, I will monitor 15199 as key support but if price breaks below this level, I will simply update the wave count.
As long as price remains contained in the descending channel and above 9820, I remain bullish on the medium-long-term prospects.
As much as the update looked good on the surface, excluding the newly acquired Studio88, the comparable results looked dim.
Load shedding continues wreak havoc on operations and the high inflationary environment coupled with high interest rates and negative real wage growth has resulted in continued financial constraints for consumers.
Credit sales are likely to be hampered in the short-term as there was a reported increase in new credit accounts with subsequently decreased approval rates.
The market clearly did not like the trading update and the share closed the day at -7.28%.
The technical picture is where we see a ray of sunshine.
After the five advance from 9820 to 24225, the consolidation has been well contained in a descending channel.
The price action is clearly choppy which is consistent with corrective price action and the current wave count suggests a combination pattern is unfolding.
In the short-term, I will monitor 15199 as key support but if price breaks below this level, I will simply update the wave count.
As long as price remains contained in the descending channel and above 9820, I remain bullish on the medium-long-term prospects.
