Sainsbury could regain its upward trend after having run out of steam.

At the current price, the company is trading 11.4 times its earnings for this year and thus has a significant potential. The company shows a strong trend on sales and earnings. On the past points on the activity the group is usually very close to its forecasts. This situation gives to investors a good visibility and a good level of confidence.

Graphically, buyer flows are reduced. If the trend is now bearish in the short term, profit taking is part of an uptrend. The GBp 384.2 support represents now a good opportunity to buy the stock. This strong level has allowed prices to rebound in the past.

Investor should buy the security close to GBp 384.2 to take advantage of a new upward acceleration in the direction of GBp 400. The crossing of this level will help to reach the GBp 414.6 resistance. A stop loss is placed under GBp 384.2.