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Opinion

A triple play of chart break-outs

A triple play of chart break-outs
February 11, 2015
A triple play of chart break-outs

Firstly, shares in clothing retailer Moss Bros (MOSB: 93p) are at a very interesting juncture, having rallied from a low of 79p when I updated my view in mid-December ('Platforms for growth', 16 December 2014).

Indeed, on a bid-offer spread of 92p-93p, the shares are within pennies of printing a point-and-figure break-out on the swing chart on a close of 95p or above. Moreover, the steady share price decline from last May's highs around 126p to the December low of 78p at the time of my last article appears to have been well and truly arrested. And with the 14-day relative strength indicator (RSI) showing a reading in the mid-60s - so not anywhere near extreme overbought territory - and the moving average convergence divergence (MACD) momentum oscillator above its signal line, in positive territory and posting a buy signal at the end of last week, then the technical set-up from my lens at least favours a continuation of the share price recovery.

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