Brown N Group pleases the market, trend still looks bullish.

Brown N reported today figures that so far pleases the market. The company was first mentioned here in this post around June time last year, as talk at the time was of a potential takeover target for ASDA. Nothing came of that and the company is far more expensive today for any potential bidder than it was back then. It is up today around 4-5% so far on the back of its statement, so there is a lot of good news already in the price. The weekly chart clearly has momentum though and looks like it wants to go higher.

The arrow on the weekly chart below shows when it was first mentioned here, the breakout to the upside was just about to start. I think what the chart also shows is how once you get away from the noise of the shorter time frames on charts, the longer time frame periods look far smoother and like an ocean liner once under way any reverse takes a while to happen. The same tends to be true of these longer term trend moves. I would not want to bet against the company going higher from here until something changes on this longer time frame to justify it.

Chart:

Bown N - Weekly