The Marks & Spencer share price will be in focus on Monday after reports that the company was reviewing the future of its French operations. The MKS share price ended last week at 187p, which was the highest level since February 13th.
M&S French retreat
The Marks and Spencer share price have been in a bullish trend recently after the company reported strong half year results and boosted its forward guidance.
The stock has also risen as investors remain optimistic about UK retailers. Indeed, shares of top retailers, including Tesco and Sainsbury’s have risen to multi-month highs.
The MKS stock will be in the spotlight after the company started reviewing its French operations, where it has about 20 stores. The company has struggled recently because of the border delays caused by Brexit issues. Food and drinks from the UK face additional paperwork, including export health certificates. As a result, there have been reports of empty food shelves in French stores.
It is not clear whether the company will shutter its operations in France. One option, according to Mail on Sunday is to stop selling the popular sandwiches and chilled food. Still, France is a relatively small market for Marks and Spencer, which operates there using a franchise model.
The MKS share price will also react to the latest UK inflation data that is scheduled for Wednesday this week. The data is expected to show that consumer prices jumped in August.
Marks & Spencer share price forecast
The daily chart shows that the MKS share price has been on a strong bullish trend in the past few days. And this month, the stock managed to move above the key resistance level at 172p, which was the highest level since May 27.
Along the way, the stock has moved above the 25-day and 50-day moving averages and the 61.8% Fibonacci retracement level. The MACD, on the other hand, moved above the neutral level.
Therefore, the Marks and Spencer share price will remain on a bullish trend as long as it is above the two moving averages. A drop below 172p will invalidate the bullish view.