Buy £24.40 Target £32.00 Stop Loss £21.40

Arguably the most favourable trend in the UK banking sector at the moment can be found on the chart of Bank of Georgia (BGEO). A little bit left field maybe: in business for more than a 100 years, nationalised by the communists but privatized and renamed in 1994.

The share price has been in a clear trend since 2013 since which point the counter has doubled. Of course, this is quite a move but as mentioned a few times before - who are we to argue with the trend?

There have been new highs for this trend as recently as May this year so that would suggest everything is still healthy from a momentum point of view. A conservative stop loss would be somewhere beyond the £20.00 lows for the year so far - but I think that is stretching things a little too far from a percentage point of view. After the 2013 low, there was support ahead of the £21.50 area, so beyond here seems a logical place for a stop loss.

If we assume this trend is going to continue then a longer-term target of breaking through this year’s high and onwards through £30.00 does not seem over ambitious, given time. With the trendline currently sitting just below £24.00 and the 200 day moving average in roughly the same place, the price does seem technically well supported at current levels.