Correction might end
tFG has a portfolio of 28 fashion retail brands across various lifestyle and merchandise categories, including the brands Foschini, Markham, Exact and @home. Many South African retailers have been struggling in recent years as consumers have tightened their belts on credit spending, but this retailer seems to be largely weathering the current economic storm.
In September, Dough Murray retired after 11 years as CEO of the company. Anthony Thunström, former chief financial officer at the company, has taken over as CEO. Under Murray’s leadership, the company has grown from 1 332 stores to over 4 000.
Outlook: From a low of 7 450c/ share in 2011, TFG tested a new high at 24 080c/share in March this year. When connecting the previous high at 20 180c/share, the share price is trading in a wide bull channel.
On the charts: TFG has pulled back after testing a new high at 24 080c/share and is currently a few points away from the lower slope of its bull channel.
Go long: A falling wedge is currently in the making as TFG corrects within the major bull channel. A positive breakout would only be confirmed above 17 580c/share, with potential upside back to the 24 080c/ share all-time high in the shortto medium-term. Firm support held above 15 365c/share, including the 3W RSI breaching the resistance trendline of its bear trend, would be signs that a positive breakout is probable. Go short: Downside through 15 635c/share would extend current downside to either the lower slope of the wedge or towards the 12 820c/share level – where it should hold.
The lower slope of the bull channel would be breached below 12 340c/share and downside to 10 205c/share could ensue. ■ email@example.com
has been rated as one of the top five technical analysts in South Africa. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the research team in the Treasury division of CIB.