Bullish sector momentum and a picture perfect price chart make Johnson Matthey a great buy…
JMAT have continued outperformance of the chemicals sector for some time now. With this in mind we’ve been closely watching the peer group for potential buys.
Johnson Matthey has been a stellar performer this year with prices in a powerful uptrend, regularly making higher ‘swing highs’ along the way.
After a period of consolidation, yesterday saw the shares reject intraday lows and close at their high. This formed a new swing low at the 20 day exponential moving average, a level which coincides with previous structural resistance.
Yesterday’s bullish price action signals that short term momentum is once again aligned with the powerful longer term uptrend and triggers our buy signal.
Place your stop below the new swing low at 3,395p. That’s a 2.7% stop so please adjust your position size accordingly.
JMAT have continued outperformance of the chemicals sector for some time now. With this in mind we’ve been closely watching the peer group for potential buys.
Johnson Matthey has been a stellar performer this year with prices in a powerful uptrend, regularly making higher ‘swing highs’ along the way.
After a period of consolidation, yesterday saw the shares reject intraday lows and close at their high. This formed a new swing low at the 20 day exponential moving average, a level which coincides with previous structural resistance.
Yesterday’s bullish price action signals that short term momentum is once again aligned with the powerful longer term uptrend and triggers our buy signal.
Place your stop below the new swing low at 3,395p. That’s a 2.7% stop so please adjust your position size accordingly.
