Cor­rec­tion might end

Finweek English Edition - - Martketplace - Mox­ima Gama

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. ■ ed­i­to­rial@fin­week.co.za

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.

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