The Foschini Group (TFG)
TFG is showing signs of long term term weakness. The share is testing the incline support in place since February 2014 and has for the second consecutive week closed below the 200-week moving average. The price has formed a symmetrical triangle which appears vulnerable to the downside if we see a close below R130. With the symmetrical triangle, the price has also formed a head and shoulder top formation.
Truworths International Ltd (TRU)
For the past six years the share has traded in big sideways range, testing a high of R112.50 and a low of R61.21 I see the long term trend turning bearish as the share consolidates below it’s 200-week moving average while the MA starts to flatten out after a steady, decade long upward trend (2003 – 2013). Support for the share is between R61 and R64 while the current level of resistance is R85, R93 and R111.
Woolworths Holdings Ltd (WHL)
Over the long term, the price of WHL appears to be running out of steam, breaking below it’s 200-week moving average and potentially forming a head and shoulder top pattern. The level of support to watch is R55.15. In the short term we may see some relief as the Relative Strength Index is signaling bullish divergence – a set up where the share makes a lower low and the RSI makes a higher low while a rebound/reversal from current levels opens up 67 as a short term target.
Shoprite Holdings Ltd (SHP)
Over the long term, Shoprite has traded in a sideways range while consolidating around it’s 200-week moving average. The long term level of resistance has been R211 and this level was briefly breached during the week of 21 August. Since then the share has traded back within it’s long term range, closing at R206.89. Technically, SHP is the strongest of the General Retailer group and remains the preferred in the sector.
Pick n Pay Stores (PIK)
A look at the weekly chart sees the price below the incline (Line C-D) in place since February 2014. During the month of May 2017 we had the price break below this level of support with a failed attempt to regain this level. The price is now also below it’s 200-week moving average. The first level of support is R53.06 with the next major support at R48.55.
Spar Group Ltd (SPP)
Spar has broken below the long term incline in place from August 2008 to April 2017. Since July 2016, the price has made lower highs with the most recent close at 167.08. Failure to break above the175 level would see the share test support at 149.37. The price is also below it’s 200-week moving average signaling a long term change in trend from bullish to bearish.