After being denied a chance to merge with Asda, shares of Sainbury's suffered another hit and tested the all time lows from June 2016. Now a perfect chance to get in with buyers or see if the level breaks in an impulsive move and sell.
Looking to trade a breakout from this continuation pattern, lets see if we can get it. Fundamentals are looking good with the Asda/Sainsbury merger, and we have recently broke out from years of sideways action. I think there's a possibility we can reach 2014 previous highs of around 427, depending on how well the stock market does in the coming months.
The daily, weekly and monthly chart do not show any clear trend. Hence, we swtiched quarterly chart, which shows multiple 3-month candles with long tails.
Since October 2013, sellers have repeatedly run out of steam in the range of 210-230. The MACD also shows the loss of bearish momentum.
If charts are anything to go by... this could be the ideal time to enter...