Halfords formed a bullish flag pattern

Halfords, the provider of motoring and cycling products and services, posted 1H underlying profit before tax of 56 million pounds, compared with a profit before tax of 27.5 million pounds in the prior year and revenue jumped 9.6% on year to 638.9 million pounds. Regarding the outlook, the company stated: “outlook for 2H remains uncertain given the seasonality of our business and the ongoing impact of Covid-19”

From a chartist’s point of view, the stock price validated a bullish flag pattern (continuation trend pattern). Prices are supported by a rising trend line in place since March low. The daily RSI (14) is bullish and not overbought. Readers may want to consider the potential for opening long positions above the support at 189p with 310p and 358p as targets (horizontal resistance thresholds). Alternatively, a break below 189p would negate the bullish view and would call for a drop towards 130p and 93p.

Source: GAIN Capital, TradingView

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