An upbeat trading statement by B&M European Value Retail (LSE: BME) sent shares soaring on Wednesday, but can the rally break through resistance?
Here’s the chart that shows how the B&M share price got a boost after an upbeat trading statement on Wednesday, and how it’s now risen by nearly 10%:
B&M European Value Retail 1-Week Chart (source: London Stock Exchange)
To buy or not to buy, that is the question. But first, a quick recap of this bargain-basement retail chain.
What Is B&M?
B&M Bargains stores that offer “big brands” and “big savings” will be familiar to anyone who has walked Britain’s high streets. However, the B&M European Value Retail S.A. company has European origins. It is based in Luxemburg and was founded in 1978.
Should You Buy B&M Right Now?
Although this week’s 10% share price boost gives this stock some upward momentum, whether that momentum is sustained will depend on what happens now that the share price has met resistance as shown in the longer six-month chart:
B&M European Value Retail 6-Month Chart (source: London Stock Exchange)
The share price could easily bounce back down now, providing an opportunity for swing traders. On the other hand, if resistance proves futile and the price breaks through, legendary traders such as Nicolas Darvas (according to his box theory) and William Eckhardt (of Turtle Trader fame) might encourage you to buy on the breakthrough.
B&M’s longer-term trend over five years is up, so that’s also a good sign.
B&M Price Targets
The B&M share price previously peaked at about 600p-per-share in February of this year, which is almost 3% higher than today’s price. However, that price wasn’t really a repeated resistance point, so it could easily be broken, too, if the current resistance does indeed prove futile.
Where Can You Buy B&M Today?
To buy “bargain” stocks such as B&M today you’ll need a broker. These are two of the best brokers we’ve found:
eToro is one of the world's leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It's social copy trading features make it a great choice for those getting started.
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.