Trade Alert: Mr “Pricey”

by / / Trade Ideas

The strength of the South African Rand coupled with retail sales figures that surpassed the market’s expectations has seen the share of Mr Price Group (MRP) put on R100 over the last two and a half months, testing a recent high of R285.00.

Technical indicators such as the Relative Strength Index (RSI) are signaling a potential pullback as the price makes a higher high versus the RSI which is making a lower high.

Recommendation: Short/Sell

Trade Levels:

Short/Sell MRP at R286.30/60 (or higher)
Stop-loss: R296
Take Profit: R265.00
Price at time of writing: R286.62

Lester Davids

Lester Davids

Trading Desk Analyst at Unum Capital
Lester started his career as an intern in the Group Schemes Risk Management department of Old Mutual in 2006 after having attained his National Diploma in Internal Auditing from the Cape Peninsula University of Technology. After a year and four months of service he took up the opportunity offered by Deloitte's Risk Advisory Services for a three-year contract as a Trainee Internal Auditor.

Whilst searching for employment after his had contract expired, he made the decision to document his ideas for his personal passion which was financial markets with a view to build a public profile and record of all work.

His passion for investment and market-related content dates back to his love for reading having started to notice the financial market data alongside the sports pages as a university student in 2004.

Lester is Trading Desk Analyst and has been with Unum Capital since July 2016.
Lester Davids