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...
Monthly Support Bottom of the Weekly BB (10)
SELL TARGET 251.70 If it breaks the support level of 254.70 then it can show downside movement for the target of 251.70. INDICATORS:- RSI is trading near to 49.53 levels with negative bias , in upcoming session downside movement is expected. MACD and Signal line is sustaining below the zero level line. Skype tayal.smith1