Leading retailer Myer Holdings Limited this week presents a bullish technical signal in forming a strong bullish engulfing pattern. This comes on the back of a 12 month gentle uptrend which ended a 3 year decline in the share price from a high of $3.
There is take-over speculation centered around Solomon Lew’s Premier Investments. If these rumours continue to gain credence, further gains in the share price can be expected. I have therefore purchased a parcel of shares in Myer Holdings for my portfolio.
Conservative investors may well delay their entry until the support/resistance level of $1.45 is penetrated.
Readers are reminded that they should not rely on technical signals alone, but should always seek advice specific to their needs from their stock-brokers, before investing.