Sports Direct: Gap support should lead to 350p

Someone who walks around with £1,000 in £50 notes is clearly a person who is familiar with the concept of cashflow and a healthy balance sheet. Mike Ashley stepping back into the role of CEO at Sports Direct should eventually prove to be a positive for the company.

Sports Direct (SPD): Gap Support Should Lead To 350p Again

Perhaps not too surprisingly, I have never graced a Sports Direct store, or indeed, a Greggs (GRG) or even sipped on an Irn Bru, as made by A.G. Barr (BAG). This is even though the beverage is from the city of my birth, Glasgow. Luckily, despite the lifestyle choices, closely following the stock market, and being a chartist enables me to deliver decent calls on the share prices of companies even if they are somewhat alien to my personal culture. In the case of Sports Direct (SPD) we are looking at the company just after it warned that the weakness of Sterling could knock £15m off its share price. The message in the wake of this is given how dramatic the plunge in the Pound has been, such a loss would actually be quite a result. Chart wise it can be seen that the stock has bounced just above the floor of the July gap to the upside at 259.7p, with the message being that at least while there is no end of day close back below this feature one would be looking to a initial target over the next few weeks at the 50 day moving average at 298p, with an end of year retest of the 350p plus September resistance after that.