The Marks & Spencer (MKS) share price is in a sharp bullish trend as the UK retail outlook improves. The MKS shares jumped by more than 3% on Tuesday, becoming the best performing company in the FTSE 250 index. The other top performers in the index are Vistry Group, Cineworld, and Tullow Oil.
MKS stock doing well
The Marks and Spencer share price has done relatively well after it published strong half-year results in August this year. The firm had a strong first half of the year and the management expects that this trend will continue in the second half.
The shares also did well because of the ongoing hype about British retailers. Recently, Asda, a leading retailer was acquired and there are talks of Morrison’s acquisition by a group of private equity companies. At the same time, there is chatter that Apollo was considering placing a bid of Sainsbury.
Therefore, some analysts believe that Marks & Spencer could also become an acquisition target. Besides, the firm is valued at about £3.67 billion, making it within reach by one of the smaller PE firms.
The MKS share price is also rising after Brexit tensions eased. The UK and the EU extended a post-Brexit grace period, which will help ensure that retailers are stocked well. Just yesterday, the company warned about the imminent shortage if the deal wss not extended.
Marks & Spencer share price forecast
The weekly chart shows that the MKS share price has risen in the past six consecutive weeks. This is the first time the stock has done that since January 2019. The shares have also risen to the highest level since February 2020.
Along the way, it has moved above the 25-day and 50-day moving averages. It has also crossed the key resistance at 172p, which was the highest level on May 24th. This level was also along the neckline of the head and shoulders pattern.
Therefore, the shares will likely keep rising as bulls target the key resistance level at 250p. On the flip side, a drop below 172p will invalidate this view.