Exciting chart potential at JD Sports

JD Sports Fashion (LSE:JD.)

We approach that awkward time of the year when fat sports enthusiasts insist on buying their favoured apparel, working on the basis watching sport on TV rather than doing it is good for you. Our thoughts turned to JD Sports (JD.), and their future share price potentials.

By any standards, JD Sports’ share price has experienced a cracking run uphill since 2009, the severity of the climb making it extremely difficult to calculate upward potentials.

Oddly, it appeared this year has seen the market agree with such sentiment with the price falling back from its highs in the 450’s. However, we’re not entirely convinced the fall back has been a true warning of danger ahead, quite the converse.

Sometimes we mention “glass ceilings” with JD displaying quite an obvious one. Amazingly, it suggests movements now above 400p should generate growth to an initial 488p.

This ambition would present another “all time high” for the price and better still, closure above 488p should indicate the potential of a longer term 567p.

As always, there’s a fly in the ointment.

We’ve circled a series of manipulation gaps from the last trading year. Normally, we’d expect see such forceful movement against a share price to start a new trend yet, in the case of JD Sports, despite the markets ministrations, the share price resolutely refused to better the 400p level.

As a result, anything now above is liable to provoke some swift upward travel. But we are concerned the price has not budged.

There is a pretty obvious “from the beginning of time” uptrend and it suggests concern should the price now slip below 330p. In reality, we would only suggest raising an eyebrow if the prior low of 327p is broke,n as this could bring the price back to 290p. And if 290 breaks for any reason, it should ideally bounce at 233p.

For now, though, we suspect a visit to 488p shall be on the cards. It’s doing most of the right things except going up. Perhaps the World Cup, along with a rush of fat blokes for England strips, shall prove the next impetus.

Source: interactive investor              Past performance is not a guide to future performance

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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