Dis-Chem Pharmacies (DCP): Downside Follow-Through (-9%) Monday, 22 April 2024

DCP is now trading lower by 9%, having tested the sell zone, followed by a bearish reversal.

On Tuesday 02 April, outlined 5 reasons to be cautious on the share. The reasons were as follows:

(1) Rating: Overbought + Readings via Tactical Trading Guide (2) Trading +44% above it's October low (2230c to 3222c) (3) Nearing it's 61.8% Fibonacci Retracement Zone (4) Relative to the Top 40 Index, DCP is trading 25% above it’s 200-day moving average. By historical measures, this appears extended to the upside (5) On an absolute basis, the share is trading 22% above it’s 200-day simple moving average. By historical measures, this appears extended to the upside.

The technical view, with the potential price path, is shown in the original chart below:

The follow-though, as of Friday, is shown in the chart below:

To trade, or open a new account, contact the Unum Capital Trading Desk: E-mail: tradingdesk@unum.co.za | Call: 011 384 2923

Lester Davids

Analyst: Unum Capital