Purple Group

Technical Analysis of PPE

2022 has been a tough year for investors in Purple Group, the financial services company that owns Easy Equities and GT247. The share price has plummeted over 50% from highs of R3.48 at the start of the year all the way down to R1.60 within the space of 12 months. 

The downtrend has been gradual with the share price steadily making lower highs and lower lows. R1.60 has been acting as a level of support and the price drop appears to have run out of steam and has started to consolidate as many investors have started to accumulate shares at lower prices. 

Looking at the 4-hour chart we can seen there is a strong accumulation phase on the price chart with the share price moving moving sideways over the past two months in the price range of R1.60 to R1.75. If you are a long term investor in PPE this price range looks like an attractive level to accumulate shares. However if you are looking to trade PPE I would wait for some confirmation of a change in the trend. This would ideally be in the form of a strong push in the price out of the current range and above R1.75. I would pay close attention to the volumes traded as a spike in volume could be an early indicator of a change in the momentum.