DAISY GRP (LSE:DAY)

Tuesday, 22nd July 2014 14:10 - by Osakisushi

This lot caught my eye, simply ‘cos I hate Daisy’s.  And dandelions. Actually, to be honest, I’m growing to detest grass too. I recently turned on a GPS mapper on my phone and it transpires that once I’ve cut the lawn, I’ve spent an entire mile as slave to a sodding lawnmower.

Worse, the main beneficiary’s of my efforts are two Golden Retrievers, one of which is prone to digging the odd mineshaft when not under observation.

Anyway, DAISY GROUP. Is it doomed?

Probably not.

Since the share broke its long term uptrend back in May, I’ve been keeping a weather eye on it as I’d a calculation suggesting the price was heading to 127p. However, it seems the price has been bounced from 136p with some integrity as I’m now showing the share as heading to 174.5p with any movement exceeding just 158p.

At this point, I need refer to the chart as, while growth to 174p sounds good, all it effectively does is back-test the point of trend break. It does not slide the share above RED and into a zone of future growth. But the good news is, CLOSURE in the future above 174p would be a good thing as it ticks a box permitting growth to 210p and more importantly, an area of price movement where positive news flow can easily drive strong movements.

But for now, there’s a tiny little deposit on this lawn which must be addressed. Unless the share price manages to actually CLOSE above 158p, my argument pointing at the ruling influence coming from a bottom of 127p remains.

A complex mess.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.