# Shoprite's mayhem! - Why I expect the share price to drop another 37%

by , 03 September 2018

For the first time in 19 years, Africa's biggest grocer (Shoprite) reported its first annual earnings decline.

With the Listeria outbreak, the higher fuel prices, the increased VAT, the ongoing strikes, 489 armed robberies and the ever-weakening rand this decline was inevitable.
Even Chief Executive Pieter Engelbrecht mentioned “the toughest (year) that I can recall”.

In terms of the market view, not only have they cut dividends, we’ve also seen the share price drop over 24% in the last few months from R277.50 down to R210.

Let’s examine the chart to see how much further Shoprite can drop.

Shop till you drop 37%

________________________________________

The very next SMS you receive could make you R2,308!

850 people ALREADY have my number in their address book - and since I started SMSing them, they've made thousands in profit  in the last few weeks alone.

Now it's YOUR turn to see how much you could make!

Best of all, you don't need ANY previous experience, hard work or special equipment aside from a stick-standard cell phone.

________________________________________

Since 2015, Shoprite has been on a sharp uptrend.

From R127.50 up to R277.50 in December 2017, we saw the share fly to an all-time high. Just a few months later, we saw the share crash down to R232.50.

When I see a sharp fall like that, I expect the share to drop even further as panic floods the market.

And fall it did. In fact, it broke out of its four-year uptrend which has now entered into a bear market (Downtrend).

So where can we expect the Shoprite share to drop?

To calculate the next target for Shoprite you’ll use the High-Low approach.

Basically, you’ll take the most recent high price of Shoprite, which is at around R278 and strongest most current low, at around R205.00, to find the target.

Here is the calculation.

High-low target =  Low – (High – low)
=  R205 – (R278 – R205)
= R132.00

This means, we can expect Shoprite’s next target to drop to R132.00 which is a 37% move from here.

Here’s the chart again so you can see how the High-Low approach works visually.

________________________________________

This ‘Perpetual Penny Stock Income’ Secret Means Your Days of Missing Huge Penny Stock
Gains Are OVER

You only need three things to get a chance at gains like that 409% from ARB.

First, you need about R10,000 to start. R5,000 will do just fine, too.

Second, you need the desire to multiply your new wealth.

________________________________________

It’s always easier to see the charts and understand the logic behind the calculations.

This is why Shoprite has a high chance of falling down to R132 from its current level.

If you want to know when to get in and out then why not join my Red Hot Trader community. You’ll get a simple text when my strategy gives a strong sell signal. Once this happens we’ll have the chance to ride and profit from the market’s downside.

“Wisdom yields Wealth”
Timon Rossolimos,
Red Hot Storm Trader

Rate this article