Eoin Treacy's view Following on from yesterday's piece focusing on which NYSE or Nasdaq Composite share are posting at least new 3-month highs I thought today that I would concentrate on the UK. To compile this report I used the Chart Library's High/Low filter to identify shares in the FTSE All Share or the AIM-100 that have made at least a new 3-month closing high in the last five days. Here is a link to the online help pages for the filter system.

Despite continued uncertainty about whether markets have bottomed, there are a number of sectors which remain in consistent medium-term uptrends. Some of these are defensive sectors which continue to have strong cashflows despite slower economic activity. Others offer exposure to demographics less influenced by Western economics. I last performed a reasonably in depth review of UK shares on August 25th.

Gold shares were clear outperformers in yesterday's report of US shares. Precious metal mining is also a notable constituent of today's UK focused report. Randgold Resources hit a new all time high this week and while it is somewhat overextended relative to the 200-day MA, a sustained move below 6000p would be required to begin to question medium-term scope for additional upside. Avocet Mining has rallied impressively since the July lows and moved to new highs from three weeks ago. While somewhat overextended in the short term, a sustained move below 225p would be required to begin to question uptrend consistency. African Barrick has broken a four-month progression of lower rally highs. Highland Gold Mining hit a new 3-year high today. Hochschild Mining has found support in the region of the 200-day MA and rallied to break the progression of lower rally highs. In the uranium sector, Kalahari Minerals has consolidated above 200p and broken the multi-month progression of lower rally highs suggesting demand is returning to dominance.

Among companies which benefit from the growth of the global consumer, Unilever posted a new all time last week and continues to consolidate above the psychological 2000p level. A sustained move below the 200-day MA, currently near 1950p would be required to question medium-term upside potential. Bunzl rebounded quickly from its early August low and posted a new closing high yesterday. A sustained move below 750p would be required to begin to question medium-term upside potential. Intertek Group has found support in the region of the 200-day MA and rallied to break the four-month downtrend. A sustained move below 1800p would be required to question the medium-term uptrend.

The UK economy represents a slow growth environment. Against such a background, where cash achieves a premium, pawn brokers have been thriving. H&T Group continues to post a progression of higher major reaction lows and moved to a new all time high last week. A sustained move below 325p would be required to question uptrend consistency. This article from Bloomberg may also be of interest. Albemarle & Bond Holdings also remains in a consistent uptrend. It has been consolidating in an orderly fashion above 350p since July, in a steady reversion towards the 200-day MA. A sustained move below 325p would be required to question medium-term uptrend consistency.

In the Utility sector, National Grid yields 5.78% and continues to consolidate mostly above the 2-year base. A sustained move below 575p would be required to question medium-term scope for further higher to lateral ranging. Drax Group posted a new closing high last week having rebounded strongly from the 200-day MA last month.

While not exactly a utility, death is as sure as taxes. Funeral services firm Dignity Group has not yet posted a new high but it rebounded impressively this week and a break of the progression of higher reaction lows would be required to begin to question potential for additional upside. (Also see Comment of the Day on June 3rd).


Among closed end funds Personal Assets IT which I mentioned yesterday is hitting new all time highs. Brevan Howard's Global Fund has also benefitted from the upward trajectory of bonds and is hitting new highs.