The recent pause in Ted Baker's (TED) uptrend represents an ideal buying opportunity, says Dean Shenton at Shenton TA Research.
The ADX indicator has shown a strong uptrend for the past six months, and the share has a strong relative strength indicator (RSI) against both the FTSE 350 index and its sector. The price is now oversold on a short-term basis, as demonstrated by the three-week RSI. I expect the resistance around the £14 mark to hold and serve as a base for further gains, so advise going long with a stop-loss on the current uptrend line at £13.20.
