Are Alliance Trust shares racing to a record high?
9th August 2022 07:34
by Alistair Strang from Trends and Targets
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After a creditable performance so far, shares in this famous £3bn Dundee-based investment trust look capable of even better things, argues independent analyst Alistair Strang.
As one of the UK’s largest and oldest investment trusts, it was something of a surprise to discover they’re domiciled In Dundee. But a glance at the history of Alliance Trust Ord (LSE:ATST) reveals an aggressively outgoing company, its very DNA always focussed on investment across the Atlantic, and now globally.
It appears Alliance Trust enjoys a share price which is shuffling toward the starting position for some positive movement. Presently trading around 995p, we regard 1,008p as a potential trigger level which should prove capable of providing a lift to an initial 1,070p.
Visually, this matches the previous all-time high of last year but, should the price close a session above 1,070, we’d hope a further cycle shall commence to our secondary target of 1,164p.
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The company has certainly experienced a firm climb in value, since the lows of the financial crash in 2009 and now, in the long term, suggests an eventual 1,215p shall provide some sort of future ceiling and probable hesitation.
Past performance is not a guide to future performance.
As always, we’d be careful with that number as, should the market start to “gap” the share price up at the open, it will become entirely possible the market itself has different ideas beyond 1,215p.
The converse scenario demands weakness below 875p to trigger potential reversal to an initial 800p with secondary, if broken, at 656p and hopefully a bounce. Visually, there’s nothing suggesting this scenario shall become an issue.
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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