Marks & Spencer (LON: MKS) is one of the major UK’s retailer and also one of the oldest ones. Certainly, the company has not performed well lately. Since the end of May 2015, the stock moved lower and lost around 50% of its value since then. But after bottoming in April this year, the M&S shares have stabilized north and continue to create higher daily closes. Looking at the daily chart, now the stock is balancing below a key resistance level near the 315.00 pence per share. Nevertheless, it seems that Marks & Spencer could be picking up the pace again, especially given the fact that we are now in the holiday season, which could help the company with its sales.
But what’s more important, a break above the 315 barrier would place the stock back into the positive territory for the year, hence why the level is so important. This could be seen as a good sign for the bulls, as the move could confirm a forthcoming higher high and the share price might get lifted to its next potential resistance zone near the 328.00 area, marked by the high of the 10th of January. A further price-increase could drive MKS towards the 341.00 obstacle, which was the high of the 8th of November last year.
Of course, if the share price remains above the short-term upside support line drawn from low of the 10th of April, we will remain somewhat positive, but if that line fails to hold the stock up, a break below it might force investors to start worrying. A confirmation break of the 282.50 hurdle could invite more bears to the table and the price could then drop to the 273.50 obstacle, a break of which may open the path towards the 262.00 level, marked by the low of the 10th of April.
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