Ergomed have been a real standout performer since our entry at the start of the first lockdown in April.

The shares have carved out a powerful uptrend – fuelled by a series of strong trading updates and broker upgrades. The shares are now changing hands on a pretty punchy forward PE multiple of 33.1 and there would appear to be plenty of good news baked into the price.

Whilst the shares have been making new highs, the relative strength indicator (RSI) has failed to follow suit – indicating the momentum is starting to wane.

With this in mind, we are going to crystalise our profit and wait for a healthy pullback before we reconsider stepping in again.

Gross Profit = 104.2%