Over time and through many mergers and takeovers, today the SPAR Group Ltd operates 6 distribution centres and 1 “Build-It” distribution centre, supplying goods and services to over 1 000 SPAR stores across Southern Africa. SPAR International is present in 48 countries with 242 distribution centres and serving 13.5 million customers per day. Their latest financial results for the six months ending March 2018 reported a 5.3% increase in revenue and a 13.8% increase in headline earnings per share.

·         A possible double bottom (positive) will be confirmed above line A (R177-30). The target of the formation should it play out is R188-40.

·         Below R166-30 we can assume that the momentum to the bottom will continue again.

·         The 9 day moving average (green line) has started to turn around and only when the 9 day moving average breaks upwards through the 26 day moving average will it confirm the optimism.

·         The MACD has broken positive which confirms the possible optimism for more upside.

·         For traders – Buy and consider a long above line A (R177-30) but use R166-30 as stop loss to protect capital. The possible targets towards the top are: R179-94, R181-56, R182-87, R184-18, R186-04 and R188-40.

·         For medium to long term investors – The share is nicely oversold on the weekly graph and technically the first sign of strength will be visible above R177-60 on a weekly close and below R166-19 we can assume that the momentum to the bottom will continue again.

Don't hesitate to ask if anything is unclear.

Frans & Christelle