$JSESHP Cup & Handle breakout constructive

Shoprite looks constructive for the bulls with the formation of the cup & handle formation. The break above the patterns resistance level @ R130 is an important technical development for the stock which should hopefully result in both technical targets being reached in the days/weeks ahead. First target at R140 is measured by taking the distance of the handle and projecting it upwards from the breakout level at R130. The second and full target level is measured by taking the distance of the bottom and top of the cup and handle formation from R110 and R130, and measuring it from the break, to give a full target of R150. The level of R150 was previously support before the stock broke down and will now likely act as resistance on the way up. Also take note of the 200 day moving average (green line) which sits at R158.40 currently and moving down daily. This could likely move lower to R150 by the time the price has caught up and would be another point of resistance which the stock will encounter should we see a swift movement higher as expected.

Comment:

First target reached @ R140 today