Shoprite’s combined subsidiaries constitute the largest fast-moving consumer goods (FMCG) retail operation on the African continent. The company is the market leader in both South African and African formal retail.
Geographically, the group enjoys a presence in several countries across Africa through its various brands including Shoprite, Checkers, Usave, OK, House & Home and Hungry Lion.
Technically, a price at major support makes the share attractive as an investment opportunity (see the black trendline on the main chart).
When the share price reaches a major support level, it suggests that the price has fallen to a level where significant buying interest is expected. Major support levels are usually where previous price declines have halted or reversed.
According to the RSI (Relative Strength Index), the stock will be overbought at ~R500. This classifies our profit target of …