No! Is the direct answer. Well not yet anyway.
Technical Analysis shows that the dominant trend, which has been an Uptrend, is in process of change. It has not quite yet swung into a Downtrend but is very close to doing so. If, or when, it does then M&S will not only not be a buy but will become a good ’short-sell’ prospect.
Look at the weekly chart -
(Click on chart to enlarge)
Note that the price has fallen below the 30wk Moving Average. This is a first signal of an impending change in trend. The price has also fallen below the main uptrend line that has supported the price during the 2009-2010 recovery rally, another signal of change.
But there is potential support for the price in the form of the 323p level – which is the 50% retracement of the March ‘09 to January 20′10 recovery rally. This 323p level may provide support and so prevent further price falls – but that does not mean that the stock can be considered as a ‘buy’ – simply that it will not become a ’short’ trade prospect (until the 323p level is broken).
Now look at the daily price chart -
The 323p level of potential support is just below the current price. A fall below this level will prove weakness in the stock price and will encourage a cross-over of the two exponential MAs which will provide confirmation of a swing into a Downtrend and, thereby, indicate the potential for (much) lower prices. Note also how the recent higher volumes have co-incided with price falls – a sure sign that selling is outweighing buying!
Recent Comments