Dis-Chem Pharmacies (DCP ZA)

Dis-Chem is one of the leading pharmaceutical and consumer wellness groups in South Africa.  The company takes a ‘Pharmacy First’ approach with the main aim of serving the primary pharmaceutical needs of individuals.  The group also utilises its wholesale business to service third parties and Dis-Chem retail pharmacies through its CJ distribution business.

Technically, the price is in a developing symmetrical triangle pattern, which makes the share an interesting candidate for a long position (see black converging trend-lines on the main chart).  Furthermore, the price distribution chart for DCP supports a bullish case given that the current price of R32.60 is situated within one of the most heavily-traded and high-frequency zones over the last five years.

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