With the joint venture between Richemont and Alibaba, the future growth prospects for Richemont are looking good. The market has started to react positively to this news and it looks like the price action is finally turning around. The share price has been in a steady downtrend with the Rand strengthening being a contributing factor.
Looking at the chart of Richemont, we can see the price action has been moving in a descending channel and looks to be breaking out of the channel. We preferably need a close above the 10734c price level to initiate a buy.
Trade: Compagnie Financiere Richemont SA (CFR)
- Entry (Buy): 10734c
- Stop loss: 10157c
- Target price 1: 11260c
- Target price 2: 11841c
Source: Bloomberg
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