Marks & Spencer Group Plc (LON: MKS) is a London Stock Exchange-listed company, active in the retail of clothes, food, and home products. The company operates through segments like UK Clothing and Home, UK Food, International, Ocado, and All Other. The UK Clothing and Home segment offers women’s, men’s, and children’s clothing, as well as home products. This company’s stock has a market cap of £4.5 Billion.
The reason for the Steep uptrend in the MKS
The MKS share price saw a significant rise after the publication of the half-yearly results. The increase in revenue by more than 11% and the earnings before interest and taxes (EBIT) by 21% has given rise to the bullish sentiment among investors along with raising their confidence.
The turnaround plan
This firm’s clothing sales grew by 11% and the food section sales grew by 9%. As a result, the share price has broken all resistance levels of the 52 weeks. The company announced a significant turnaround plan in the middle of 2022. It involved simplifying the network, restructuring finance costs, and concentrating on high-growth categories in the market. By December 2022, investors had gained confidence in the plans, which resulted in a bullish trend in the MKS stock price.
Technical Analysis and Prediction of MKS Stock Price
The MKS stock price as of this wiring is trading at a level of £236. The Bulls have just made a 52-week high a few days ago. After taking a rebound from the immediate support level of £220, the stock has crossed past its resistance level of £235. It may sustain above it.
If the bulls are able to sustain past the immediate resistance level, the next destination will be the 2nd resistance level of £249. However, if a strong downtrend comes, the MKS stock price can break its first support and move towards its second support of £201.
Moreover, the Relative Strength Index (RSI) is in its overbought zone of 70. It means that the current strength is overvalued. It can cause the stock to have some corrections. Meanwhile, the simple moving average (SMA) line of the RSI is down below 60.
Marks & Spencer Group Plc (LON: MKS) is a London stock exchange listed company facilities in the retail of clothes, food, and home products. The MKS stock price started a bullish trend after the improved financials of the company. At present, the stock price is trading at £236, which is near its 52-week high. The price prediction for the MKS stock will be bullish as the stock has made it above its resistance level. However, some mild corrections can be seen as the RSI is near its overbought level
Support: £220 and £201
Resistance: £232 and £250
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