Mr Price - Poor Trading Update, Price Weakness May Continue

I have been bearish on SA Retailers since March 2018 at the height of Rand strength which was strongly influenced by "Ramaphoria".

Short ideas at the time included:

JSE:MRP at R286
JSE:MSM at R173
JSE:SHP at R255

This morning JSE:MRP is out with a trading update which may not sit well with the market. Group Sales flat, with Mr Price Apparel segment facing immense pressure as consumers face challenges from all angles.

On the chart, we see a bear flag below prior support which may take us down to the 147 to 150 range over the medium term as the share continues to de-rate.

50-day MA and 200-day MA continues to trend lower.