Reverse Cup and Handle formed on Shoprite.
Strong buying led to a high inclined formation, showing demand is stronger than supply.
Other indicators confirm upside.
7>21
Price >200
RSI>50
Target R254.00
Since the last trade update, SHP has been on a strong trajectory down.
It formed a large Head and Shoulders on the daily chart which then the price broke below the neckline.
We had other indicators confirming downside including:
200>21>7 - Bearish
RSI<50
The target remains at R177.11
With fundamentals, I don't have much to say except the negative effect...
W Formation has formed on Shoprite.
The strangest thing is that the 200MA is actually the Neckline of the pattern.
so if the price breaks below the 200MA, all Heck is going to break loose.
There are other bearish signs like
21>7>200 RSI<50
Bearish bias
My first target is R189.75.
CONCERNS:
We haven't had a break of structure yet. This means, the position will...
JSE:SHP tested R247 this morning, the stock previously failed to break above this level creating what looked like a double top. Luckily, the recent low was a higher lower, an uptrend movement is still possible. JSE:SHP will be attractive if it breaks above R248, a buy stop order can be useful in getting a decent price near a pivot point.
