Shares in WM Morrison Supermarkets buck a sharply lower blue chip trend, up 0.6 percent with the FTSE 100 index down 1.6 percent, one of just three blue chip gainers, supported by upbeat comment from Galvan Research.
“Despite difficult conditions, Morrison’s May update was in line with its expectations, and this coupled with the ongoing share buyback and the woes of sector leader Tesco suggests to the Galvan Research team that the shares represent a buying opportunity just off the current year lows,” Andrew Gibson, Head of Research at Galvan says in a note.
“Morrison shares have rebounded off the closing low of the year at 267p, something which ties in with this month’s bear trap from below the January support at 271p. The likelihood now is that while there is no sustained price action below 267p, there will be sustained upside through to a retest of the black 200-day moving average line at 296p,” adds Gibson.
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