A bullish continuation pattern has completed for US Food & Staples Retailing, according to David Sneddon and James Gilbert at Credit Suisse in London.

Sneddon and Gilbert say the sector’s rise above key resistance at 440/45 (the 2018 highs) has completed a bullish continuation pattern (see Chart). As such, they think the bull trend looks set to extend with trend resistance next seen at 454/55, with scope for 466.

Sneddon and Gilbert also point out that US Food & Staples Retailing has formed a base in terms of its performance relative to the broader market (lower pane of Chart), suggesting the sector should continue to outperform.

See Chart.