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.