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TAKE PROFITS – DS Smith (SMDS)

Close DS Smith (SMDS) at 351p

We decided to step in and buy DS Smith when the shares were back at a major support zone in September.

Since then, a series of bullish trading updates and a rally in the wider market have propelled the shares higher.

Knowing when to take profits is more art than science, but a 38% gain on a defensive value stock inside of four months is decent result.

It is also worth noting that the shares are now looking technically ‘overbought’ with the RSI indicator above 70 (see chart below).

With this in mind, we’re going to crystallise our profit in the position.

Profit = 38.2%

SMDS Daily Candle Chart