Tiger Brands Short Setup

I was eye-balling a short on this stock a few weeks back and again there are signs of a potential opportunity to take a short position with the price action exhibiting many similarities to the setup at that time.

Looking at the weekly chart as a starting point, the signals are a bit mixed with the stochastic chopping around in a  fairly neutral zone. The moving average positioning of the 21 EMA and 89 EMA remains bearish but we can see a bit of a pullback into the space between the moving averages with the painting of a bullish engulfing candle at the end of last week.

The daily chart is reflecting more definitive short signals with the overbought stochastic starting to flatten out. Price has also retraced 100% of the move from its previous swing high and we have a bearish daily candle on Friday.

The support and resistance graph shows the recent range in which the price has fluctuated with the lateral resistance zone between R300 and R294 still well intact. There is a support level at around the R270 level as well.

Setup would be a short entry at around the current price level with a target at the R275 level and a stop above R300 - this would yield a reward-risk of around 4-1. Based on the some of the mixed signals I'm giving this setup a 61% grading.