Flash Note: Shoprite Holdings (SHP)
![Image](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgj0F5SvNluRNFtkxXbAUtI-1sWcSdcCwClcDy1mm_pb2B2SmRSQ2ezLNYGMt3G6Na-Zc3tOyTgrps7sQK5cXI3F9kHHU-YpVsjl0VpxPZjtui9D7kHgurotjUCyG8-iklL3x9fHSLSpf0/s320/shplogo.jpg)
Summary: Medium term bullish signals emerging but be mindful of short term technical barriers. Analysis Type: Equity Portfolio Time Frame: Medium Term Last Close: 12723c (could pull back to 11800c) Stop-loss: 10500c Within my technical toolbox, the Relative Strength Index has been a primary tool in analyzing charts over the last number of years. Used in various ways, the indicator has been useful in identifying momentum as well as forewarning about changes in trends well before it is visible in the price. Currently, a review of food retailer Shoprite reveals a potential change in medium term trend, driven by: 1. Bullish Divergence - recently we saw the price make a lower low while the RSI made a higher low, refuting the temporary weakness. 2. Key Support - the 125 level has been a key accumulation level over the last number of years, with evidence of strong buying activity in January 2012, October 2014, December 2015, January 2016 and September 2019. Currently th