There was a pie in the face for fans of sandwiches maker Greencore in March with reference to its Elephants’ Graveyard warning regarding its U.S. business early this year in March. Since this flushout the bulls have slowly but steadily got back in the saddle here at the Dublin based firm, albeit while looking over their shoulder for the bad news coming in threes legend that the stock market seems to specialize in.
Indeed, what has been of interest in the past few weeks is the way that the stock has allegedly been in play as a takeover target – almost running in parallel with Fever-Tree over the past month or so.
However, the ride here has not been as rocky, with the name of the game apparently being for patient traders to wait on a sustained clearance of the 200p zone. This came on Friday with a decent rise through the round number, and perhaps more importantly, a surge in volume, the highest buy side volume of the year to date.
Therefore, whatever one thinks of the rumour mill, perhaps not that much, we do have a technical setup on hand. This consists of the break higher through the top of a 2018 triangle formation. While squeamish people may wish to wait on 210p plus just to be sure, it does look as though provided there is no sharp U turn on Monday, we shall be treated to a retest of the main post mid 2017 resistance zone at 230p – 240p, with or without any M&A antics. The stop loss on the speculation would be back below the former 190p – 195p resistance zone.