The luxury goods company Compagnie Financière Richemont SA (JSE: CFR), better known as Richemont, has been attracting interest for all the right reasons.
The Switzerland-based luxury goods holding company announced that it would terminate its South African depository receipt programme and list its ‘A’ shares on the Johannesburg Stock Exchange (JSE) as a secondary listing. This new structure should improve the tradability of the “A” shares on the JSE and reduce the administrative complexity surrounding the depository receipts. If stakeholders approve the new structure, we could expect the listing to occur around 19 April 2023.
Technicals
The share price has increased over 5% since the news broke of the secondary listing and could potentially be much higher if it remains above key support levels. To negate any downward pressure, the price action must stay above the critical base breakout around the R251.95 share level (red line). If this level does not hold, we could see the lower support at R240.00 as the first point of interest for the bears.
If the bulls step in at present levels supported by the fundamentals, we could expect the price action to push higher to the R293.52 resistance level, which would be the point of interest for the bulls.
Summary
If the positive sentiment continues, the bulls could see the price action move to R293.52, a share level if supported by the fundamentals. A potential short exists below the R251.95 base to the next support level, around R240.00 for the bear case.
Source: Compagnie Financière Richemont SA, JSE SENS, TradingView.
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