It was officially – on the mainstream financial media – supposed to be the case that Morrison shares rose last week off the back of picking off stores from rivals, and the Amazon takeover reheat. While the stock paused yesterday, today we see it breaking above its 50 day moving average at 230.5p for the first time since September – a significant technical feat. Even better it has held the chart gap to the upside, a sign that those short of the stock were caught out, and remain in pain.
A decent end of day close today above the 50 day line should steer the shares back towards the mid 240p’s in the near term, with or without further speculation regarding the company. It is probably the case that if there was no background M&A noise, there would not have been the improvement / follow on move we are seeing this week.