Remgro has been on a slippery downward slope since the beginning of 2018. When we have a closer look at Remgro's longer-term price movement, we will note that the downward movement might be a lot deeper. Since March 2010, Remgro traded at an average discount to its Intrinsic Value of 16.7%. At the current R179.95 levels, the discount, however, now is at 21.7%, which got my attention as a possible value play.
Technically, the share price found (bottom) support at R176, three times already, creating a nice little a Descending Triangle pattern. Should we see an improvement from current levels, with break and close above the 50-day moving average (first target) at R186, could see the share price test the resistance level at R189. This coincides very well with the historical average discount to intrinsic value, which should see the share price trading just above R188.
A break a close above these levels could be very bullish for the share price, with the next target becoming the above these levels could 200-day moving averages at R194.
A break and close below R176, could be seen as a bearish signal, which could act as a Stop-loss for short-term traders.
Technically, the share price found (bottom) support at R176, three times already, creating a nice little a Descending Triangle pattern. Should we see an improvement from current levels, with break and close above the 50-day moving average (first target) at R186, could see the share price test the resistance level at R189. This coincides very well with the historical average discount to intrinsic value, which should see the share price trading just above R188.
A break a close above these levels could be very bullish for the share price, with the next target becoming the above these levels could 200-day moving averages at R194.
A break and close below R176, could be seen as a bearish signal, which could act as a Stop-loss for short-term traders.