CLICKS

Clicks Group is a health and beauty-focused retail and supply group.

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Through its market-leading retail brands, the group has hundreds of stores across southern Africa, while United Pharmaceutical Distributors (UPD) has close to a third of SA's private pharmaceutical wholesale market share.

Clicks has maintained a resilient performance over time amid economic headwinds, supported by strong cash generation and defensive demand for healthcare products and services.

Technically, a developing Elliott Wave one structure makes the share an interesting candidate for a long position (see the insert on the main chart). The emergence of Wave one often marks a pivotal shift in market sentiment, typically following a period of consolidation or corrective decline.

The rising Moving Average Convergence Divergence (MACD) histogram on the weekly chart signals weakening selling pressure and fading bearish momentum. Paired with higher lows, this points to growing upside potential.

We suggest a medium capital at-risk allocation to this trade. Increase exposure for a break above R375.

Technical analysis