Shoprite | Rally fades, 2014's lows come in focus
Tuesday saw a massive rally in SHP - 9%, it's biggest rally in 22 years.
The cause: A warning that profits would fall by up to 20%, but on flip side, a strong increase in sales in the South African market.
By Friday morning however, the buyers had given back a lot of their hard fought gains.
Switching to a weekly chart (an early call yes, the week isn't over) we can see just how far off the highs price has come.
I don't think the current down trend is over and still favour the short side down to 13800 and possibly to 12600
The cause: A warning that profits would fall by up to 20%, but on flip side, a strong increase in sales in the South African market.
By Friday morning however, the buyers had given back a lot of their hard fought gains.
Switching to a weekly chart (an early call yes, the week isn't over) we can see just how far off the highs price has come.
I don't think the current down trend is over and still favour the short side down to 13800 and possibly to 12600
Trade closed: target reached