Interesting chart:NEW Look GRP(NEW)

Riz

Experienced member
1,266 5
Have a look at NEW...most interesting going up non-stop since early April...breathing on little retracements and rerallying...each time refusing even t touch 24 day MA, both stochastics and RSI ticking sharply up...adding a chart for further comments on this one

Bullish notes from Seymour Pierce and Peel Hunt in the wake of full-year figures lifted New Look, 2½p better at 93½p. (Times)

Riz
(No financial advice intended)
 

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As usual this is an interesting chart Riz!

It's not dissimilar to some of the others in the same sector. As a holder of MRT, HOF and CC. and with having a careful eye on DEB and AG. (for instance) I'd appreciate your objective view on the small caps (SMX) and General Retail Sector.

Am I right in thinking that you consider this a buying opportunnity for selected stocks?
 

Riz

Experienced member
1,266 5
Thanks Darth,

SMX started an impressive turn round in early April going all the way up from 2800 to around 3150 (that's more or less the period you started to pick them, precision I'd say) retracing however for the last week breaking a couple of support levels just over and below 3100 on the way down, indicating the retracement is overdone...probably due to the general negative market sentiment...still it's in the risk of breaking the upward channel, so in need of a turn round or at least stopping to fall soon...

The retail sector as a whole seems to be in a good recovery position for some time...the hype of TMTs caused money flowing out of the sector leaving it undervalued and giving it time to consolidate thus concentrating on core businesses, what we've witnessed for some time is buyers piling back in. Maybe that's why we started seeing similar chart patterns...your timing and pickings were great...

That's of course the sector in general, there are still some over there which may go even further up...as for MRT, I am not much happy with the last retracement looking different comparing with the previous one making me wonder if it might turn into a fall...in such circumstances I watch the 5 day MA very carefully, looks like it's just crossing under the 10 day one which is usual at retracements, but if it goes further away from it, I'd take it as a warning...overall not enough evidence that MRT will break down its upchannel as 10 and 24 day MAs still sharply ticking up...but has to be watched carefully...

HOF looks safer to me, I think they might retrace more...my only concern with this one would be that retracement started right at year high of 1999 thus raising the question that they might find it hard to break 110 level, if they manage to turn round and break it they'll enter the gap down area starting from over 180 which was formed in 1988, I don't see strong resistance levels there up to 150 at least...95 is a very strong support level I'd be worried below that level...

As for CC. I don't think I'd hold them if the last support level around 148 is broken (they retraced on high volume), any turn round before that breaking the 160 or so resistance however will still mean the continuation of higher highs lower lows with the MAs in the correct order and great upward potential to fill the gap down area formed in early 2000 starting from over 240...

I am sure you'll act the best way and accordingly...and good luck

Riz
 

Riz

Experienced member
1,266 5
Yes Darth, a turn round around this level or a continuation of fridays' tick up is more likely...+1.5 at 84, thin volume however..

riz
 
 
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