Happy New Year
By Sun Storm Investment Research
A Profit & Solutions Strategy
Disclaimer: I am not a financial advisor, so please do your own research before trading anything
Stock should be trading around £300 / + 150% in 18 months. Not a bad trade for investors looking to play it safe in the face of an 'alleged recession' being in the post. The stock has been trading inside this descending triangle for years and just confirmed support on the bottom.
The monthly chart below confirms the bullish divergence.
With Snap election on December 12, Sainsbury's offers great opportunity. As the company gets all of it profit in UK, it is very exposed to the election results.
Since Conservative win is considered good for Brexit progress, UK stocks expected to rise on it. Results will be released around 2am on Friday.
So far the polls suggest that Boris should win.
Good Luck!
J Sainsbury Plc engages in the retailing, financial services, and property investment businesses. It operates through the following segments: Retail-Food, Retail-General Merchandising and Clothing, Financial Services and Property Investments. The Retail segment distributes food, general merchandise, and clothing. The Financial Services includes Sainsbury's Bank...
After being denied a chance to merge with Asda, shares of Sainbury's suffered another hit and tested the all time lows from June 2016. Now a perfect chance to get in with buyers or see if the level breaks in an impulsive move and sell.
From using Elliot Wave and Fibonacci tools I believe I have found a Long entry point for Sainsburys. Todays candle has bounced right off the 1.618 fib. Let me know what you guys think.
Looking to trade a breakout from this continuation pattern, lets see if we can get it. Fundamentals are looking good with the Asda/Sainsbury merger, and we have recently broke out from years of sideways action. I think there's a possibility we can reach 2014 previous highs of around 427, depending on how well the stock market does in the coming months.
Looking at the chart now, you can see since the merger was announced price gapped higher to trade around 315p. We now have a new consolidation range between 294 - 327p and I am waiting to see if we get a break on with high volume today. On the downside keep an eye on the previous consolidation top specifically 294 and 280p and the next resistance is the 350p...
The daily, weekly and monthly chart do not show any clear trend. Hence, we swtiched quarterly chart, which shows multiple 3-month candles with long tails.
Since October 2013, sellers have repeatedly run out of steam in the range of 210-230. The MACD also shows the loss of bearish momentum.
If charts are anything to go by... this could be the ideal time to enter...
Tomorrow we have results from Sainbury's (SBRY LN), in recent times the share prices have performed pretty well (H1). In terms of Co. specific news we will be looking out for news regarding the pension deficit which has increased from GBP 389mln to GBP 900mln - GBP 1.3bln according to reports in the Times. Also another thing to consider is the recent acquisition...
