Editorial Contributor
SuperGroup Shareholders in clothing retailer SuperGroup are definitely feeling like fashion victims. The company has suffered a series of self-inflicted problems in recent times, especially with the management of its stock. A rapid expansion programme may have added to its difficulties, while sales growth has been disappointing of late. This has fed through into much lower than originally expected profitability.
SuperGroup Chart The share price chart is decidedly ugly. From its all-time high of ÂŁ17.96 in February 2011, SuperGroup dropped to as low as ÂŁ2.61 in early June. And, despite an almighty rally into mid-July, the larger downtrend remains in force for the moment. The price is still below its 200-day moving average, although it does appear to be pausing in advance of fresh gains. The next target for such a move lies at 508p.
84 | www.financial-spread-betting.com | September 2012
On a short-term view, I would seek to ride a further move higher beginning from current levels around the 13-day exponential moving average. I would become more positive still on a breach of that 200-day simple average.