Long Steinhoff International
After experiencing a significant decline in it's share price on 24 August due to the allegations of accounting impropriety (which was a republication of a 2015 German magazine article), Steinhoff made an immediate recovery which saw the share rebound from R54 to the last swing high of R66.25.
Over the last eight trading sessions the share has softened, closing at R62.13 during yesterday's trading session, on the back of a stronger Euro versus the US Dollar.
Having a look at the share chart of it's DAX-listing the share has pulled back toward the prior low where I expected the share to once again find support.
Around current levels I am look at an opportunity for traders to take a buy/long position:
This is the trade set up:
Buy/Long SNH at or near 62.00/62.50
Take Profit: R66.50
Risk to reward is 1:1.8
From the desk of Lester Davids