The Clicks Group has been one of the best performing stocks on the JSE in 2017, rising by more than 45% to Date, it has risen by 109.07% in the last three years and in the last five years the share has risen 173.15%. It is definitely one of the best in its sector and in this article we take a technical view of the retail-led healthcare group.
The share started 2017 in a nice uptrend trading above both the 200 day moving average and the 50 day moving average and this was further strengthened by the golden cross on the moving averages that happened in March and the share has consistently been finding support off the 50 day moving average.
The chart structure continued being strong for the rest of the year and every time the share tested the 50 day moving average in bounced to a new high. It momentarily broke below the 50 day moving average in November but it quickly bounced and had a nice rally reaching highs of R194.35 towards the end of December. This was followed by the recent pull back which has seen the share once again testing the 50 day moving average at R170.24.
The chart structure is still very strong and given the trend that the share has been following and the fact that it is in oversold territory on the stochastic, it is a buy off the 50 day moving average with a stop below the reversal low but like always one always need to have a good risk and reward ratio before executing the trade.
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