UK Boom Boosts Truworths Amidst SA Struggles

Truworths International Limited (JSE: TRU) witnessed a 0.39% increase in share value today, maintaining a positive trend with a 1.46% rise over the previous month and an impressive year-to-date surge of 29.29%. The company’s retail sales showed contrasting performances between its African and UK segments. While Africa experienced a mere 1% growth, the UK’s Office saw a substantial 38.8% increase, with online sales contributing significantly. 

However, challenges persist in South Africa’s retail sector due to economic pressures affecting consumer spending. Truworths remains cautiously optimistic, banking on moderate inflation and potential interest rate relief to boost household spending. Despite a challenging environment, the company aims to leverage its account portfolio strength and invest in technology for sustained growth. 

Technical Analysis 

The 1-day chart shows that Truworths’ current price stands at 7,676 cents, trading flat around the 50-SMA (blue line) within an ascending channel trading pattern. Price action trades well around the upward-sloping 50-SMA (blue line), well above the 100-SMA (orange line), and rising 200-SMA (red line). 

The 100-SMA recently broke above the 200-SMA but still trades below the 50-SMA. RSI is trending flat following the slight downward, RSI = 45.51 and flat RSI-based MA = 54.25. 

Short-term trading opportunities towards the 8,033 cents resistance level could arise should the bulls sustain a push above the 50-SMA. A break above the initial resistance could confirm the bullish momentum, likely bringing the 8,435 cents resistance level within the bulls’ reach in the short term. 

However, a break below the 50-SMA would leave a potential for continued bearish pressure towards the 7,409 cents support level. A break below the initial support could trigger a run lower and would likely bring the 7,117 cents and 6,840 cents support levels into play. 


Truworths International Limited’s (JSE: TRU) recent share price performance has been largely driven by the company’s strong sales growth in the UK. However, the company’s South African business remains under pressure due to weak consumer spending. 

Technically, the stock is currently trading in an ascending channel pattern. A break above the 50-SMA could signal a continuation of the bullish trend, while a break below could lead to a pullback towards the 7,409 cents support level. 

Sources: TradingView, MoneyWeb, Truworths International Limited, PR Newswire, Seeking Alpha, BusinessLive. 

Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

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