A new outlook for Morrisons shares
This analyst describes what the share prices must do to escape a ‘toxic mess’.
4th February 2020 09:19
by Alistair Strang from Trends and Targets
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This analyst describes what the share prices must do to escape a ‘toxic mess’.
Morrison Supermarkets PLC (LSE:MRW)
The sheer joy of watching the FTSE 100 open on Monday, armed with a Latte and two hot croissants, prompted an effort to be generous with a review of Morrison's (LSE:MRW) share price.
If they could give me something missed for 16 years, the least I can do is propose some good news for their shares.
Despite making the effort to sound encouraging, the reality is less than encouraging, a bit like Warburtons' Gluten Free Bread, looking great but packed with other allergens.
The immediate situation for Morrison is dodgy, looking very like weakness now below 180p shall bring reversal to an initial 175p. If (or rather, when) broken, it should bottom and hopefully bounce at 165p.
It's the 165p level where extreme care needs taken. This will represent the share price achieving a new "lower low", breaking the uptrend since 2015 and in the process, taking the price below the lowest part of that particular cycle.
If, on the initial surge down to 165p, the price manages below such a level, any bounce risks being short lived as the ruling expectation becomes 140p.
At this level, we'd hope for a real rebound. Even visually, given the match with the low of 2015, it will make sense to anticipate a recoil if 140p makes itself known.
To escape this toxic mess, Morrison price needs exceed 197p currently, entering a zone where an initial 210 makes sense with secondary, if bettered, a very promising 228p.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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