Pre-Market
A global rate cutting cycle including action from the SARB has support strong moves in retail shares.
In addition, early positive signs in the local economy has boosted confidence which has led to analyst upgrades.
This is especially relevant in the Consumer Discretionary sector which may feel the effect of improved consumer spend.
While the fundamentals are positive and, after a strong rally, the short term reward-to-risk does not appear appealing for new buy/long trades. For Consumer Discretionary shares, this is what the data says:
MRP Mr. Price
TFG Foschini
TRU Truworths
Clients of Unum Capital have had access to research which has flagged opportunities across in selected names. TRU, discussed at R56, has nearly doubled in price over 14 months.
Truworths - as discussed in the report (Active Trading Plan, Monday 03 July 2023)
Then at R56 - now nearly R110.
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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:
Whether the reward-to-risk is attractive for a buy/long position?
Whether a share is weak or if aggressive buying is underway
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
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
Lester Davids
Analyst: Unum Capital
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