This Analysis show that there is a gap between TESCO or Morrisons and M&S os Sainsbury it means that:
M&S os Sainsbury should be a long position and TESCO or Morrisons should be a short position to close the gap.
Further analysis would be required on each Market to define the investment
Candle Pattern: Morning star
Trend Entry: against
TP/SL Ratio Target: 2 to 1
Target TP PIPs: 40
SL PIPS: 20
Fib Entry: .764
Fib TP: 1
Pivot Point: S1
End of wave 5
Looking for ABC correction to the upside
morning star formed at 764...
Multiple fake breakdowns/bear traps below 230 followed by a convincing break above 237 (Apr 24 high) coupled with the bullish daily RSI suggests the prices are set to retest 250 (March high).
On the downside, only two consecutive daily close below 220 would revive bearish view.
Price is in a firm up trend despite retracing recently and in recent Kantar surveys showed the Co.'s market share decline 3.2% but stand at a respectable 10.4% with Tesco still in the lead at 28.2%. However, recent news for the Co. has been positive with the tie up with Amazon and their last set of earnings showing an increase in revenues.
Daily chart – Bullish break from symmetrical triangle
Rebound from symmetrical triangle support followed by a break above 194.00 (Aug 12 high) coupled with bullish daily RSI and money flow index suggests prices are likely to target recent cyclical high of 210.10 (Mar 7 high).
Only a day end close below 187.40 (Aug 17 low) would signal bullish invalidation.