Since August last year, Mr Price continually found support at R205. In March, the stock broke through support but recovered back to R224.54 in May.
This is a currency sensitive share and the rand blowout has now pulled the price back through the previous support. The current downtrend is gaining momentum and making me very pessimistic.
The MACD is also trading in bearish country and pointing down. This would indicate that a bearish trend is in force.
The Slow Stochastic does have the stock as oversold, so there might be some upside over the next day or two, but the stock will in all likelihood continue the drop in time. Especially since the price is currently creating new lows.
Action: Place a Limit order to SELL at R181.00 or better with a Stop Loss set at R195.00. I will aim to take profit at R165.00 and R150.00 respectively.