Purple Group (JSE: PPE)

Technical analysis of Purple Group Ltd

Purple group group is currently trading at a share price of R1.96.

The share reached a high of R3.50 in January 2022 and has been in a downtrend ever since with the share price making lower highs and lower lows. See red arrow on the chart for the pattern currently playing out.

When looking at the chart we can see that the price is currently testing the level of support at R1.90. I would not be looking to buy more shares at this level given that the trend is still currently downwards. This level of support is shown by the green rectangle on the chart.

Should the share price close below the level of support at R1.90 it could drop all the way down to the next level of support at R1.60 shown by the black horizontal line on the chart. R1.60 could be an attractive opportunity to accumulate more shares and i will continue to watch the share price in the coming days to see if the support at R1.90 will hold.