LSE:SMIN (Smiths Group PLC)
SMIN has finally broken out of its channel – ideally we need a close above 10.12 but the charts below show why I think this stock has potential to be quite bullish for the next month or so.
It’s possible we’ll see a pullback before a breakout above 10.12 but I’ll be entering long live at market for the following reasons.
– We’ve seen lots of trading activity between 9.63-9.70 (as see on the volume profile) so close above this range is bullish
– Slow accumulation appears to have taken place (as shown by OBV) and this has a tendency to occur during basing patterns seen like this channel
– A 6 month cycle appears to be in place which bottomed in November, so the next month should be bullish as we approach the cycle top
has confirmed change in trend and provided the most reliable buy signal
– On 21st December
the FTSE Sector General Industrials warned of potential strength against the FTSE by breaking its own descending ratio line.
– On the 4th Jan
the sector produced a buy signal and has since gained 5.03%