The FELLA IndexComprised of the following with equal weighting on 02/01/2020
Halfords
Anheuser Busch Inbev SA
Frasers Group
Tesco
William Hill
Wetherspoons
Manchester United
AutoTrader Group
Greggs
Gym Group PLC
HFD trade ideas
Halfords Fundamentals + Technical ShortHalfords is on an all time low after breaking the 2012 low and now there is no continuous support in the downward trend. The market before continuing the trend or to reverse there is a likelihood of forming a base through consolidation, where we can expect market to hit short term support and resistance levels over and over again.
Technicals - Price just retraced at 38.2% FIB levels at the least we can expect the market to return to 100% levels before the price either breaks out or reverses.
Fundamental - Revenue of the stock is stalling. Op. Margin and ROE is on a downward trend though all the broker consensus is to "outperform"
Caution - there are two major news event to keep in mind.
1. Brexit on the Oct 31st
2. Earnings release on Nov 7th.
Trading Plan
1. Enter the trade at open with a stop loss above the previous resistance levels and target at previous support level.
2. Let the trade expire prior to the earnings release. i.e., close out the position prior to the earnings release on Nov 7th.
3. Keep an eye on volatility on 31st October due to Brexit. If the volatility is too high and unable to be in the trade psychologically then to get out.
Good luck!! Let the markets be with you
HFD Trend-follow upBroken & consolidated above daily 200MA with 50MA rising into a cross.
Looks good entry for following the 200 up.
