Mr Price Group is a publicly traded retail company with brands like Mr Price Clothing, Mr Price home and Mr Price Sport. Their group results for the year ending March 2018 reported an 8% rise in total revenue. They also reported a 21.1% rise in diluted headline earnings per share. The opened 57 new stores for the year and they had a total of 1 258 corporate owned stores at year end.
- The 20 & 40 day moving averages confirms that the momentum to the bottom is still in place.
- The 20 day moving average seems to turn around but the optimism will only be confirmed when the 20 day moving average breaks upwards above the 40 day moving average.
- A double bottom was confirmed with a close above line B (R231-67). The target of the double bottom is R250 and below R212-35 the formation will become obsolete.
- Line A (R232-12) which has kept the momentum to the bottom in place since April this year, was tested.
- For traders – Buy above R233 but use R210-66 as stop loss to protect capital. The possible targets towards the top are R235-70, R238-77, R240-93, R243-09, R245-76 and R250.
- For medium to long term investors – The weekly graph is nicely oversold and technically we would prefer to see a higher low first before we accumulate for the long term unless if you are keen to the same as the traders above.
Frans & Christelle de Klerk