Some basic information about Purple Group
Purple Group, short code PPE, owns brands offering various financial services from investing in property, to trading and portfolio management.
The Purple Group has a market cap of 2.589 billion ZAR and a P/E ratio (Price to Earnings Ratio) of 45.2.
Figure 1 Trading View PPE 12/09/2022
The rise in Purple Group share price
In January 2018 the Purple Group share price posted a multi-year low of 6 ZAR. In June 2020 we started to see a steady rise in the share price that gathered strong momentum through 2021 and 2022. This resulted in a 6225% increase to the high trade of 350 ZAR in April 2022.
This was in line with the onset of COVID-19 and a rise in the interest of on-line investing.
Figure 2 Trading View PPE share price increase of 6225%
A look from a fundamental perspective
The group's last results were for the 6-months period ending in February 2022. The highlights are:
An interesting note in the adjoining letter from the CEO “Revenue per EasyEquites’ customer has returned to pre-Covid levels.”
With an interest in on-line flattening off since the world returned to some form of normality, can the strong growth continue?
For more information about fundamental analysis click here.
A look from a technical perspective
We must look all the way back to 2005 -2007 before we can note a cluster of support and resistance levels. Often, what has previously acted as support will do so once more. This offers a ‘zone’ between 167 and 157 ZAR.
Figure 3 Trading View PPE previous support and resistance zone
We have a possible technical support level at 162 ZAR. A rejection of this level would form the AB leg of a cypher pattern known as Bat formation.
This would then suggest a possible upside correction towards 233 ZAR and possibly 328 ZAR.
Figure 4 Trading View PPE possible BAT support
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