A share for your shopping list, or could it get cheaper?

Morrison (WM) (LSE:MRW)

It’s aways tempting to declare a lack of Interest when covering Morrison (MRW) supermarket. In our little part of Argyll, the choice of supermarket is limited to one and, frankly, they can be less than efficient.

What other store always runs out of the same things on the same days, yet never changes their order pattern? Perhaps it’s Captive Audience Syndrome.

Rather spitefully, we’ve circled a movement on February 6th which makes us wonder if some grief is planned. We’re often a little suspicious of these nasty little blips below an uptrend as, while they may just be the market playing with peoples underwear, sometimes they prove harbingers of doom and, in the case of Morrison, it appears now below 209p should bring a discount down to 189p initially.

Visually this makes perfect sense given the manipulation gap lurking in the 190’s, but we’d warn, emphatically, should 189p break then a logical bottom and potential bounce point calculates at 167p.

Currently trading around 223p, the share price requires better than 231p to indicate some optimism for the near future as growth to an initial 240p looks fairly certain. Secondary, should such a level be bettered – ideally with the price closing a session higher – calculates at 260p and this ambition is liable to provoke game changing prospects for its future.

In the event the share price manages to exceed the highs of August last year, we start talking at 320p and look every upward.

Alas, if our local store is anything to go by, expecting the best is liable to be similar to looking for gluten free bread any day – except on a Tuesday.

 

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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