After the huge share price spike during COVID, Kogan (KGN) shares fell back to earth and have spent the past year languishing at depressed levels.
“Retail sales numbers continue to fall and you would have to be brave to invest in a retailer right now,” Michael said.
“However, KGN shares are showing some signs that there has been some buying behind the scenes and that the lows may already be in place.
“Since the low in July 2022, it appears as though KGN had been forming a base with some clear resistance near $4.80 and a series of higher lows.
“It now appears to be breaking out of this base (circled).
“If this is the case, then this breakout should lead to a significant rally.
“This could be a case of the market looking beyond the short-term problems and ahead to an improved retail environment several months from now,” Michael said.
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