Morrison’s share price has spiked higher this Friday, one day after the supermarket chain decided to go for an improved takeover offer from CD&R worth 285 pence per share, ahead of the earlier offer from a consortium led by Fortress Group.
With the offer from US private equity firm Clayton, Dubilier & Rice worth 7 billion pounds, shareholders have dropped the Fortress Investment Group’s 6.7 billion-pound offer, with a final approval vote set to take place soon.
The Morrison share price has spiked hard this Friday, taking its price higher by 4.27% this week in what has been a remarkable run for this stock. Two months ago, the stock traded for less than 180p. It is now trading at a 61% premium.
Morrison’s Stock Price Prediction
The weekly candle needs to close above the 287.6 price mark to confirm the break of this level. This clears the pathway towards the 300.00 psychological resistance, which also serves as the previous high seen on 27 August 2013. Above this level, the 9 September 2013 high at 312.3 becomes the next target, before the all-time high at 339.7 becomes visible.
On the other hand, a correction that takes the Morrison share price candles below 270.2 could spark a deeper correction, targeting support levels at 257.3, 249.9 (9 January 2017 high) and 243.9, in that order.