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...
#Daily chart: Price approaching the R210 resistance area which has been holding since at least November 2018 (save for that March 2019 results induced spike).
Will the resistance still hold? I’m expecting it to.
Bear flag still in-place and playing out.
Also helping the case for the bears is the down-sloping trend-line which the price-action is so far 'faithful' to.
In the short-medium term, target is still R100.
Daily chart shows price attempting to break the resistance level of an ascending triangle pattern.
We also have a 'golden cross' of the 50 and 200 day moving averages, which is considered bullish.
R210 could be a short term target.
Mr. Price 'very happy' in today's session, up an impressive 4.4% so far.
But how far can it go?
In its way, we have falling 50 and 200 day moving averages between R226 and R231 which may potentially limit further gains.
I'm monitoring these levels for a potential short
Support comes in around R205 on the daily chart.
Looking at the weekly, again there is support...
Despite a positive reaction to its Trading update last week, gains only went as far as the incline resistance around R205
We have now ‘lost’ the 50dma; next is the 200dma which coincides with the horizontal support area around R188-R190.
This is the area to watch for a move lower.
Elevated valuations, weakening rand; I don't see that gap closing soon.
In case it does, there is a falling 50dma (currently at around R179) on the way which has been acting as resistance (for most of the times) since April 2018.
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.