“As a retail stock” Michael said, “you would expect JB HiFi (JBH) to be sensitive to the direction of interest rates.

“Since the start of the year, expectations of interest rate cuts have continued to be pushed further and further away, and this should be a negative for retailers.

“Despite this, however, the share price of JBH has trended higher all year.

“The share price chart (see below) also indicates that this upwards trend can continue.

“I last looked at JBH in mid-June where the charts indicated that a low was probably in place and that the shares were ready to trend higher again.

“The stock was still trading in a sideways range which had been in place since the start of the year.

“It broke free of this range in July and then rallied strongly to over $80.

“It then spent much of September – October consolidating that move by trading sideways in a narrow range.

“Last week it broke free from this range.

“This indicates that the sustainable uptrend for JBH is still in place, and we should therefore expect to see higher levels over time,” Michael said.

JBH

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.