Vehicle Distribution Sub-Sector

I've been increasingly conscious recently of how scarce good breakouts (on volume) have become and it's with a little trepidation (after the big fall on the US markets on friday) that I'm going to watch the vehicle distribution sub-sector next week.

There are several possible opportunities here and sector strength is a nice confirmation characteristic to have.

CDB and DXM are just two out of a dozen stocks fthat have formed a base and are all poised to breakout/move up.

As I recall a member of the senior management team from dixons motors was on Bloomberg Friday evening too...
 
One week and the sector has received a lot a media attention and numerous postings on various bulletin boards.

Out of the dozen or so candidates in the sector I have chosen CDB (CD Brammall) and VDY (Vardy) based on purely technical reasons.


CDB has broken out this week from the 240p zone on good volume with overhead resistance around 280p.

Current price is 246p.

VDY closed at 377p and is breaking out to an all time high but could do with some more volume to support the break.

I now hold both.
 

RogerM

Established member
752 6
Interesting build up of volume at the trendline. Might be worth watching to get back in if it reverses of the trendline at around 190. This worked well with Chemring CHG at 317 in mid July.
 
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