Web boom for Sainsbury’s, and is it time for Jubilee Metals?

by Alistair Strang from Trends and Targets |

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Supermarket's share price could rise from online offering, while the metal stock could rise further.

Sainsbury's & Jubilee Metals

Following a year when we've all enjoyed and endured the experience of online shopping, Sainsbury’s (LSE:SBRY) came top in a Which? report for online service, whereas Aldi topped the list in the 'value for money' category.

Needless to say, Aldi also flopped around a bit, with customers tending to ridicule their shop layout. But their prices are good, if you could find the products! Sainsbury’s, which has been around since 1869, appears to have embraced this new-fangled online experience rather more successfully than rivals, and we'd hope to see this success mirrored in their share price.

So far, unfortunately, this seems not to be the case. Trading around 226p at time of writing, there's a pretty firm suspicion near-term weakness below just 224p shall promote reversals to an initial 211p. We'd hope for a bounce should 211p make itself known, but warn that, should such a price level break, we'd then hope for a rebound before our secondary of 188p.

Perhaps the accolade suggesting Sainsbury’s, after 152 years, really knows what it’s doing will provide an effect on price movements. But realistically, and at present, we need the share price to rise above 250p to suggest the possibility of movement to an initial 267p with secondary, if exceeded, calculating at a visibly sane 300p eventually.

We use the term ‘visibly sane’ due to the high prior to the 2019 drop showing itself as an excellent level to produce a glass ceiling eventually.

Source: Trends and Targets. Past performance is not a guide to future performance

Following the stock market crash of 2009, there was little doubt Jubilee Metals (LSE:JLP) had a share price that was enthusiastically talked up by certain folk in internet chat rooms.

As always with this sort of nonsense, the gains eventually vanished, the share price finding a floor at the 1p level. For the last five years the price has enacted spasmodic twitches, but now it feels like something genuine may be happening. This year, the price has outperformed all near-term logic, and there's a strong suggestion gains next above 17p should continue growth toward an amazing 24p.

If exceeded, our longer-term secondary calculates at 32p, and as with our thoughts on Sainsbury’s above, this presents the sort of level where some hesitation can be expected.

Obviously, there's going to be a bunch of folk trapped, since the 32p level appeared 10 years ago and a lot of them will ‘bail at break even’, bringing selling pressure. Additionally, another group of folk will glance at the chart and see the prior highs, assuming a problem exists at such a price level.

We're aware we're speculating on the price doubling from current levels, so it is perhaps worth doing some research. It needs to fall below 10p to give early warning of panic.

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. 

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