$JSEHMN HMSO - Hammersons looking for a bottom

Keep an eye on Hammersons in the UK (shown chart in London as that is where the primary listing is based - trades on the jse as JSE:HMN. Stock has had 4 months of way above average volume changing hands and the hammer reversal candles in April and May give you the clue that the buyers have fought extremely hard on this one. Spikes in volume like this often lead to major turning points, so for me this is the type of stock you want to put in the bottom drawer as a longer term equity investment..

for the shorter term traders - you would buy at around current levels of 83p, using a stop loss below last months candle low at 72.62. If all goes well the first target should be at around the 200p level (previous swing low before break down) which means this can more than double.. let's see how it transpires, but warning: as this is a monthly chart it can take some time to play out