Plexus at above 230p the target is 350p
By The Closet Chartist — Friday 18 October 2013
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Some traders looking at the daily chart of Plexus (POS) might be getting a sinking feeling in terms of what the price action has been doing over the past three months in terms of the extended consolidation. But…
This has taken place for the share price roughly 20p either side of the 250p level, although so far well above the 200 day moving average at 231p.
So while there is no end of day close back below the 200 day line we can assume that the stock is merely delivering an extended bull flag, a formation that should be resolved to the upside.
Perhaps even better than this prediction is the way that despite recent attempts to probe to the downside the shares have been able to remain well above the floor of a July unfilled gap to the downside at 229p.
The lowest the shares have been able to dip since then is September’s 236p low, before this month they put in a higher low at 243p.
All this adds up to the prospect of Plexus now being ready to resume the break to the upside which has been on the cards since the triple unfilled gaps to the upside of July.
The implication is that while the 200 day line holds we could be due a top of July price channel target as high as 350p in terms of being a modest end of year target.
free stock charts from uk.advfn.com