Purple (PPE): Set to Move Higher

The JSE listed stock Purple Group is checking many boxes for a higher price long term.

Stage Analysis

Using Stage Analysis from Stan Weinstein, one can see that a full cycle has already occurred for the stock. From 2018 through to 2023 - the 4 stages were seen.

Now the next cycle has begun with a relatively brief base accumulation stage. With a series of higher high and higher low - the advance has just started.

Getting in early on a long advance stage and simply waiting and watching until the topping signs show up can be a very lucrative and simple strategy - not requiring lots of time and effort.

Technical Analysis

A higher high and higher low can be seen on the chart. A cup and handle pattern with the lip-line at 94c broke out and this signals strength and continued momentum upwards.

Recently there has been some price movement in and around 110, with resistance above at 111 to 114c. The patient may look to wait for price to move lower to the upward trendline and look to buy at 95 - 100c.

Otherwise can jump in now with the price anywhere between 106 - 111c and look for the price to break and move higher.

The projection of the earlier cup and handle targets 134c.

Longer term the price may well surpass the previous cycles high at 338c.