TRUWORTHS INT LTD

JSE

TRU

Truworths ‘invalidating’ the bearish rising wedge pattern which had formed,by breaking to the upper side of the wedge pattern. Just above the wedge pattern, we have horizontal resistance just below the R78 mark, and we look set to close above that resistance level. Rand is still weak, most SA inc. stocks pulling back today, but Truworths seem resilient...

JSE:TRU formed a bullish engulfing candle pattern on Friday which is a strong reversal signal. We can expect it to go upwards from here.

I'm monitoring for a break lower, on that bear flag on the TRU daily chart.

Yesterday we closed below the incline support going back to November 2016. 50 and 200 day moving averages pointing down. I'm monitoring for a 'Short' around R73/R74; provided the broken support can act as resistance 1st.

Currently on the demand zone, look for buy entry on smaller timeframes

JSE:TRU Making cup and handle. Solid break above 9100 will open 10400 as target.

JSE:TRU has formed a Bearish Engulfing causing a double top to be formed as well. If this trades lower on Monday, I will enter a short position.

I will tell you off the bat that I am bearish on the whole retail sector and already have a short on Shoprite (SHP). Looking at Truworths now, it looks like the rally is fading with the price now heavily over-bought and some negative divergence creeping in on the RSI. TRU is approaching a short term resistance point which I think can be shorted for a move back...