This Analysis show that there is a gap between TESCO or Morrisons and M&S os Sainsbury it means that:
M&S os Sainsbury should be a long position and TESCO or Morrisons should be a short position to close the gap.
Further analysis would be required on each Market to define the investment
The recent gap down will be filled in the next few days, giving the opportunity for investors to take a long position for some quick profits on this UK supermarket brand.
Candle Pattern: Morning star
Trend: down
Trend Entry: against
TP/SL Ratio Target: 2 to 1
Target TP PIPs: 40
SL PIPS: 20
Fib Entry: .764
Fib TP: 1
Stochastic: over-sold
MACD: bullish
200SMA: below
BB: n/a
Pivot Point: S1
Elliot Wave:
End of wave 5
Looking for ABC correction to the upside
Notes:
morning star formed at 764 fib level, around the s1...
Multiple fake breakdowns/bear traps below 230 followed by a convincing break above 237 (Apr 24 high) coupled with the bullish daily RSI suggests the prices are set to retest 250 (March high).
On the downside, only two consecutive daily close below 220 would revive bearish view.
