Interactive Investor

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

Alistair Strang from Trends and Targets

    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.

    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. 

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