AG Barr shares could pop higher still

After calling this share right last September, our chartist explains what he thinks will happen next.

Our report last September on the Scottish soft drink manufacturer AG Barr (LSE:BAG) proved rather successful, despite them gaining notoriety due to reduced sugar content of their staple product. 

In fact, the share price has proved capable of ridiculing the doomsayers. 

When we last reviewed AG Barr, we'd postulated 867p as a viable long-term target, and this ambition was achieved – and significantly bettered – during last month. 

The situation now is mildly interesting, with movement now above 980p suggesting some continued growth toward 1,027p next. If bettered, secondary is a longer term 1,092p. Of course, we've got a "however".

Our prior prediction of 867p has been exceeded, but from a Big Picture viewpoint, it was a pretty major target level and one we'd expect some volatility around. 

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Rather curiously, only now does it appear some collywobbles are appearing, as below 906p is expected to enter slight reversal down to 860p next.

We would expect a rebound at 860p, if only due to the market viewing the share price as "back-testing" (a nonsense term) the prior target level. 
Should 860p break, then we can calculate our secondary at 810p and, visually, this is a point where it really must fizz a bit.

For now, we suspect some reversals are coming today toward 860p, prior to another stab upward. Quite oddly, this is still showing a longer-term aspiration up at 1,377p, an ambition which has remained valid since the price was in the five-pound range!

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.