1. Bollinger bands tightening point towards future volatility – as the firm caters to low income consumers and has performed well despite COVID it is likely that the volatility will be favorable
2. Price is moving within an ascending triangle pattern
3. Stochastic RSI and MACD indicate that the share is oversold, further indicating a favourable entry position
Long:
Price is in all time low territory and has seen a significant decline in response to COVID. In my opinion, the share is oversold and shows upside potential as economic prospects remain weak driving more users towards low income orientated retailers and as the price recovers after the March sell off
Target of 1400 with stop loss @ 800
Feedback welcome
NB This idea is provided as market commentary does not constitute investment advice
2. Price is moving within an ascending triangle pattern
3. Stochastic RSI and MACD indicate that the share is oversold, further indicating a favourable entry position
Long:
Price is in all time low territory and has seen a significant decline in response to COVID. In my opinion, the share is oversold and shows upside potential as economic prospects remain weak driving more users towards low income orientated retailers and as the price recovers after the March sell off
Target of 1400 with stop loss @ 800
Feedback welcome
NB This idea is provided as market commentary does not constitute investment advice
Trade closed: target reached