Greggs share price expected to turn higher amid market-led declines

Greggs downside provides bullish possibilities within a reliable 2019 uptrend.

Food retailer Greggs has been enjoying a memorable 2019, with the company’s push into the vegan market providing a huge boost in terms of both sales and marketing. However, amid all this talk of vegan sausage rolls, it is easy to forget that the company has also enjoyed success with their new push into new locations throughout the country. Their drive to improve the quality of products on offer, coupled with a shift into more central locations, has brought a new lease of life into the firm.

Greggs share price technical analysis

From a technical standpoint, we have seen a very reliable ascending channel play out throughout the past year. The creation of higher highs and higher lows remains in play, yet channel support is now coming under pressure as the price trades around the ascending trendline. This provides a key near-term crossroads, where the price could turn higher from here. That being said, a break below this trendline could provide us with a deeper retracement and better entry point.

Greggs shares: what’s the outlook

From a momentum standpoint, the stochastic oscillator continues to move lower, pointing towards a good chance that the stock will pass through trendline support. However, with the clear uptrend remaining intact, such further downside could be a positive for bulls looking for an entry. Utilising the stochastic, the past two occasions we have seen a rise up above the 20 level from oversold have provided great buying opportunities. As such, it makes sense to look for longs on a break up through the 20 mark. Otherwise a decline into a deeper retracement would similarly provide an advantageous area to get long.

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