Admiral Group on track to break above £30
This chart shows how shares in the FTSE 100 insurer could trade at £30 or more for the first time in two years. Independent analyst Alistair Strang explains the logic.
26th March 2024 07:37
by Alistair Strang from Trends and Targets
Share on
Something appears to be happening with the insurance industry. A quick scan of end of day positions revealed Admiral Group (LSE:ADM) and Beazley (LSE:BEZ) starting to look positive for the longer term, then we opted to glance at Direct Line Insurance Group (LSE:DLG), discovering a company share price swimming in the other direction.
After some thought, we decided to review the most positive looking share and thus, settled on Admiral, the company behind some of the more irritating TV adverts.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Admiral Group, the company behind Admiral, Bell, Elephant, Veygo and Diamond insurance labels, in addition to starting the price comparison sites known as Confused.com and Compare.com, enjoys a share price which looks very capable of experiencing some real recovery.
What’s a bit strange is the price was trading around 2,300p pre-pandemic, somehow surging to the 3,700p level in 2021 before embracing the misery which afflicted the UK markets through to 2023.
Now, similar to the FTSE 100, Admiral's share price is showing early signals of some coming growth.
Currently above 2,870p calculates as capable of triggering price recovery to an initial 3,002p with our secondary, if bettered, working out at a longer-term 3,450p, solidly in a zone where a third level 3,664 calculates as possible. This has the potential of some price hesitation while the market questions if a previous all-time high shall represent the highest the share price can go.
If things intend to go horribly wrong, below Red at 2,520p currently works out with the risk of reversal down to an initial 2,265p with secondary, if broken, calculating at an eventual hopeful bottom of 2,073p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.