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Published on Nov 10, 2016
Shares
in J Sainsbury plc (LON:SBRY) have plummeted almost 9% in the past day
or so and could fall even further according to technical analyst Zak
Mir.
The UK supermarket giant warned on inflation and price competition yesterday as it unveiled a 10% decline in underlying profits for its most recent quarter.
Mir tells Proactive Investors that the longer the share price holds below the 243p mark, the higher the chance that it slips towards the 220p level.
Looking at the charts, Mir said: “You can see that there was a rally in the run up to yesterday’s update from the company.
“[The shares] broke through the 260p area temporarily but we’ve come back quite sharply against the market.”
“Situation now is that there is a risk that we’ll revert to the lower end of this 220p to 260p range and that risk is elevated the longer we stay below the blue fifty-day moving average at 243p.”
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