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Writer's pictureLester Davids

Shoprite: Marked Down - Tuesday, 03 September 2024

Real-Time: 10h38

Ticker: SHP


  • The +31400c level was 'penciled in' as a level to monitor for an entry on the short/sell side. This is where sellers stepped in, from which have seen a sell-off down to 29542c at today's low (thus far).

  • The group's earnings release has acted as a catalyst for the selling pressure. My original view is shown below:

 

Previous Post: 01 August

Title: Overbought Near Key Inflection Points

Real-Time: 10h38

Shoprite Holdings (SHP)

 

ABOUT THE TACTICAL TRADING GUIDE:


Technology + Proprietary Insights has helped to develop automated tools and strategies that are used to identify potential trading opportunities as well as highlight potentially significant technical developments across various time frames. This page highlights readings from our Tactical Trading Guide (Price Action Tool) which is also available as a live tool via the telegram group. The tool provides automated price analysis for any tradeable instrument across 3 time frames: short (short term), medium (medium term) and long (long term). Readings are subject to change, based on the development of the subsequent price action.


The tool helps to determine and shed light on the some of the following:


  • A price action probability for the given time frame.

    • Three (3) ‘trading’ time frames are considered: Short Term (1 to 10 days) / Medium Term (2 to 4 weeks) and Long Term (5 to 8 weeks)

  • Whether the reward-to-risk is attractive for a buy/long position

  • Whether a share is weak. In this case, wait until the price stabilizes before looking to enter (i.e. want until it stops going down)

  • Whether aggressive buying is underway. In this case, do not ‘chase’ (do not buy) but instead wait for a pullback to re-enter a buy or an overextension with deteriorating candle structure to sell/short.

  • Whether a trader can look to buy a pullback into a key moving average (continuation trade)

  • Whether a share needs to break a range for a new trend to be determined (bullish or bearish)

  • Whether a traders needs to monitor for a change of character that could lead to a bullish or bearish reversal

  • Whether a share could start a consolidation phase or before continuing it’s bullish or bearish trend

  • Whether the upward momentum is slowing (if it's in a bullish phase)

  • Whether buyers can look to 'phase in' to a position (if it's in a bearish phase)

  • Whether a share lacks directional bias.

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