Technical Take - Shoprite Holdings Ltd. [JSE:SHP]:
Shoprite has been testing its support level at 19457c since March, a break below this support level will give a signal of a short trade with first take profit level at 18815c. Traders can enter the position at 19308c with a stop loss placed at 20069c to leave some room if the price retraces. If the price does in fact retrace to the resistance line as indicated in the chart below (i.e. downward sloping redline) it will signal that the trade is not on. We have placed a stop loss just above the resistance at 20069c.
Direction: Sell (short)
Entry: 19308c
Stop: Loss: 20069c
Take Profit: 18815c
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Source - Bloomberg
Always remember to apply your risk management measures before placing your trades as this will keep you trading in the markets.
Barry Dumas | Trading Specialist at GT247.com
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