Since the last update, we established Pick N Pay formed this M Formation which we were anticipating a break down.
The break down took place and we were initially hesitant as we expected conservative testing of resistances and demand zones.
But the fundamentals caught up to Pick N Pay, and the price continued its slump.
The company is struggling with the...
Rounding bottom or C&H is forming on PIK.
Whichever price breaks up and out of will give a strong buy signal.
Other indicators are confirming upside.
7>21 but price is still <200MA. We can expect the price to move up to rebalance with the 200MA which acts as an elastic.
RSI>50
Target R52.26
Downtrend has been forming on Pick n Pay since 8 Dec 2022.
It's been a difficult period for retailer and looks like there is more downside to come.
200>21>7 - Bearish
RSI<50 - Lower highs
Target R23.20
Apart from its distribution channel issues, I think the weakening rand is the main culprit for retailers downside.
There are a few fundamental reasons...
