Shoprite dipped after the last update, but only a little for wave ((ii)).
Small, shallow pullbacks are a reflection of prevailing market sentiment and the market has been very bullish on Shoprite since 31 May 2023.
The wave count shows the stock is in wave((iii)) and there is no sign of a pullback yet.
Buy the dip for wave ((iv)) but be warned, it could be...
SHP has been moving sideways in a clear pattern, with repeated fluctuations around earnings results that typically result in a price decline.
It's possible that this pattern will repeat itself once again?
Since the last update, Shoprite shot above the neckline of the Inverse Head and Shoulders.
Since then, it's been rocketing to our first target. As long as the JSE ALSI continues its medium term upside and the retailers continue to move up - there is no stopping this one.
Other indicators confirm.
7>21
Price >200
RSI>50
Target remains at R257.00
ABOUT THE...
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
The last coverage of Shoprite was on 01/02/2023, link below.
Shoprite traded a lot lower since the initial coverage but has caught a massive bid since 31 May.
I have yet to dive deep into what could have triggered the buying but the technical picture has become clearer.
The stock has made a large, sideways Flat pattern from the wave (3) peak of 24723.
From 24723...
Head and Shoulders formed on SHP.
It broke below the neckline and now its been coming down on the downtrend.
We can expect the bounce up, before the downside.
200>21>7 - Bearish
RSI<50
Target R177.11
CONCERNS: The JSE ALSI is setting itself for upside due to the Symmetrical Triangle.
This might cause a disturbance in shorts with retailers but right now the...
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...
SHP on its 60min chart has form an inverted head and shoulders pattern over the last 10 trading days, A solid close above R205.00 will confirm the breakup which open targets up to R214.00 area
Head and Shoulders formed on SHP and the price broke below the neckline.
We were hesitant with this analysis as world markets showed bullishness to come.
But charts are charts and they never lie.
Therefore we should follow the trend than try go against it.
200>21>7 - Bearish
RSI<50
Target R177.11
what we can see SHP is testing a trendling which was previous resistance which could now act as support. For entry i would wait for bullish confirmation on the daily close or wait for a weekly close above the support
Shoprite has been weighed down together with many other retailers due to the ongoing electricity load shedding.
Price has returned to an area of previous support so will be important to see how it reacts in the R205-R210 zone.
Dare i say it but there is an ominous head and shoulders pattern above ...
Head and Shoulders has formed on Shoprite and the price has broken below the neckline.
200>21>7 - Bearish
RSI<50
Target R177.11
CONCERNS:
I don't like shorting strong companies generally especially when the JSE ALSI 40 is on a strong uptrend.
Revenue growth is up 17.20%
Net income Growth is up 14.70%
Average annual Revenue growth (15yr) up 11.08%
Net Margin...
SHP has held its lateral support off the R210.00 level and has now broken up out of its short term bearish channel which projects a possible upside target to R234.00
Shoprite is head and shoulder the Greatest retailer in the content. But never let that make you ignore bearish signals. Things that go lower can go even lower. Its not a question of cheap or expensive
We have finally got our pull-back! the stock has come down to meet the trend line. The trick now is to wait to see if it holds... It is getting a little over-sold but it still remains bearish according to the momentum indicators. If the price can stay above this trend line, I think it's worth a nibble for a small bounce back to the 50 day moving average which gets...
