This auto sector firm is worth keeping an eye on
18th May 2022 06:59
by Alistair Strang from Trends and Targets
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It's share price has already done well, but independent analyst Alistair Strang thinks this stock is a possible rising star.
Our weekly delve into Europe to search for shares becoming interesting revealed yet another automotive related organisation, ALD SA (EURONEXT:ALD).
In fairness, ALD claim to be active in 43 countries worldwide and, while their name may not be familiar, the fact they are the vehicle leasing arm of finance giant, Societe Generale, inspires more than a touch of confidence.
Our fascination with ALD comes from both a Big Picture perspective and also from the near term. At time of writing, trading around €13.76, visually there’s quite a strong suggestion that movement exceeding just €14.1 should promote some growth to an initial €14.9.
By many standards, such a target ambition is liable to become quite a big deal.
Achieving our €14.9 target accomplishes a series of little victories. Firstly, it takes the price above the downtrend since 2018. Secondly, it betters the pre-pandemic high around €14. Third, it describes a higher high, quite literally the best price achieved since 2018. And fourth, it also gives a conclusive chance for the share price to close above the visual ‘Glass Ceiling’ which loiters at the €14 level.
As a result, we harbour considerable hope that movement such as this shall fuel long-term success, if only due to the plethora of boxes being ticked.
Source: Trends and Targets. Past performance is not a guide to future performance
In the event the share price manages to close above the €14.9 level, we suspect a future movement capable of challenging its previous all-time highs with a target level at €16. If bettered, brand new heights become possible with a third target level at €19.3.
By every conventional standard, ALD appear worth keeping an eye on.
For trouble to rear its head, the price needs to slump below €11 as this calculates with a reversal potential to an initial €9.4 with secondary, if broken, at a probable bottom of €8. As can be assumed, nothing currently threatens such a calamity.
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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