AG Barr shares: get ready for some action
14th July 2021 07:40
by Alistair Strang from Trends and Targets
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This fizzy drinks giant has struggled since peaking in 2019, but the charts suggest interesting times ahead.
Scottish soft drink maker AG Barr (LSE:BAG) (the Irn Bru folk) recently suffered a ‘Royal Visit’, the media showing the Queen and her crowd of hangers-on dutifully pretending they were enjoying fizzy drinks, fresh from melted steel girders. Given conventional sentiment in Scotland, we hold suspicions this sort of nonsense has its roots in business owners' dreaming of honours rather than any real belief a picture of Her Majesty knocking back Irn Bru will appeal to their target market. Private Eye even has a section on this, The Order of The Brown Nose…
Cynical nature aside, AG Barr looks like their share price is poised for some action.
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Presently trading at around 547p, the share need only fizz above 567p to become interesting. Such a trigger level should prove capable of allowing the price to bubble up to an initial 614p. As the chart below shows, this has the potential of the price regaining its long-term Red uptrend, creating a realistic ambition of future recovery to 700p.
This year has experienced some quite amazing weather here on Scotland’s west coast and, despite (until now) reduced tourist numbers, soft drink sales will have been very high. Hopefully, for AG Barr, this shall follow through with vastly improved income over last years performance, giving sufficient excuse for a future boost above 700p to a longer term 889p.
Surprisingly, this calculation tier also gives share price movements the opportunity to cover the circled gap on the chart with startling accuracy.
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.
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