Lewis breaking up from flag consolidation $JSELEWLewis delivered a fantastic set of results recently in the face of a tough consumer environment. Looking at the technical setup - the 200 day moving average (green line) is pointing up and providing support on pull backs. After a nice little run from their recent results release, the stock has consolidated some of the gains in the form of a bullish flag formation. We are now starting to break out from this flag and hopefully the stock will soon find enough momentum to move to the upper end of the channel around R42.00.
Strategy : Traders can look to buy and accumulate the stock between R33.00 - R34.00, using a stop loss as a close below R32.00. Targets to the upside are R38.00 and then R42.00. A nice risk reward ratio on this setup. Liquidity can sometimes be an issue in this counter, but when it moves it can move rather quickly.
