Safestore Holding began floating on the UK stock market at £2.40 in March 2007. The future did not look positive for this stock as it immediately descended 83% finding support at 0.38p.
Investors saw this as a cheap price to get on board and from December 2008 price has been in a bullish trend.
With a trend lasting over 10 years, investors that were able to buy shares at the low price have seen price climb a staggering 1,770%.
This has not been the cleanest of trends as based on the weekly timeframe, there have been periods of consolidation along the way with deep pullbacks. With stocks that behave in this way, patience needs to be applied.
The mistake a lot of traders make is they exit when a trade is not moving in their direction. What consolidation periods and deep pullbacks offer us investors is the opportunity to compound on our positions which results in multiplying profits so consolidations are very much welcome periods in the market.
If we take a moment to take a look at the most recent consolidation where price went sideways from 12th April 2019 to 27th August 2019, which was a period of 4 months, after breaking out, price has gone on to move up 11%.
Exiting early would have resulted in missing out on this move and we could now potentially see further moves to the upside.
Safestore (LON:SAFE) has been consistent over the years and may continue to be so for the foreseeable future.
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