Proactive Investors - Run By Investors For Investors

Marks & Spencer could retest Brexit vote lows of around 250p says Zak Mir

The charts say Marks & Spencer could lose nearly a quarter of its value.
shopping, Marks & Spencer
Traders are waiting for a breakout

It is down 30% in the year to date and, according to chartist Zak Mir, there is a certain sinking feeling for Marks & Spencer PLC (LON:MKS).

Marks & Spencer could lose nearly a quarter of its value. The analyst said the retailer could fall back towards 250p per share, lows last seen in the wake of the Brexit vote.

“The market is not convinced about the turnaround strategy here,” Mir says, in a Tips TV segment for Proactive Investors.

Focussing on the chart, he adds: “The stock is in a narrow triangle, effectively between 320p and 340p. From a trading perspective, you’d probably just be waiting for a breakout from that little range, for new direction.

“Normally a triangle is a continuation pattern, so therefore we are expecting a break to the downside, to at least partially retest the post-Brexit vote lows towards 250p.”

Nonetheless, Mir notes there could be support for the share at around the 300p level, if the bulls are lucky.

View full MKS profile View Profile

Marks and Spencer Group PLC Timeline

Related Articles

December 03 2018
“I think customers are seeing that we do offer value and that really is the answer,” said chief executive John Nichols
Scans and MRI
November 28 2018
The firm's subsidiary, Imaging Biometrics, recently appointed a South Korean distributor a few weeks after receiving the first commercial order for its StoneChecker technology
December 18 2018
MetroRod has been in operation for 30 years but only became a franchise relatively recently

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use