Will it be a positive result for Sainsbury's?
After a poor 2022, the supermarket has bounced back, up sharply this calendar year and over the past 13 months. Independent analyst Alistair Strang gives his assessment of share price potential.
2nd November 2023 07:32
by Alistair Strang from Trends and Targets
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From a near term perspective, it feels like the market has been anticipating positive news from Sainsbury (J) (LSE:SBRY) ahead of today's half-year results.
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It’s certainly the case movement above 262p calculates with the potential of a lift to 274p with secondary, if exceeded, at 282p.
The secondary looks fairly significant, allowing the share price to produce a higher high, along with breaking above the downtrend since 2021. This will result in us believing we have produced a viable third level ambition, one which calculates at a future 323p.
However, if the supermarket sector intends to follow the masterclass of irrational share movements from the financial sector, we’d have concerns should the market find itself motivated to break below Red, currently 250p, as this risks traffic down to an initial 240p with secondary, if broken, at 224p.
We have quite a strong reason to hope for a bounce, should the 224p level make itself known.
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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