Defying Gravity and Technical Principle

technical analysis tell us that stocks cannot simply go on rising. the time will come for a breateher and a down trend here and there even when the general trend is a rising one.

not so it appears the case with this stock. the company sells perfumes and other luxury goods. as such the stock had tanked and reached a bottom of 68p during the tail end of last september. since then the rise has been relentless and near vertical, up all the way to 113p today. admittedlym, there have been few days of horizontal marching at 76, 86, 89 and 94p levels. apart from those, the rise has been up. and if that is not enough, the close of trade day price has invariably been either at or almost at the day high, amounting to a very bullish outlook. there have been almost no declines throughout. except for very few, and highly insignificant ones, during the days above when the stock ranged horizontally.

and with x-mas upon us, the outcome in the short term must be very bullish indeed.

technically, there is support at 98p and fib provides support at 96, 90.5 and 85.