Unum Capital: Technical Trade Idea – Hyprop Investments
Shopping mall owner Hyprop Investments has, over the medium term, lagged it’s sector peers as concerns over a slowing retail environment as well as fears around Edcon place short term pressure on the share. The relative under-performance can be seen on the chart below which measures the share versus it’s peers over a 3-month period.
Based on the charts below, the trade idea is to take advantage of a potential bullish reversal and a return to a close correlation to it’s sector.
Technically, the share is trading near it’s swing lows, with the Stochastic and Relative Strength Index indicators suggesting a temporarily oversold level. During yesterday’s trading session we saw the price slip below the horizontal support level however traders should bear in mind that this may potentially be a false breakdown and an opportunity to go long/buy upon a reversal. Specifically, I am looking for the price to reclaim 7860c with strong intraday support above this level as confirmation of a bullish reversal. Should we not see this occur, I would consider the idea invalid.
These are the trade levels:
Buy HYP upon the price holding above 7860c on an intraday basis
Take Profit Target: 8450c
Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Unum Trading Desk Analyst
Tel: 011 384 2923