Interactive Investor

Beazley shares looking good

The shares have had a good year so far and are near record territory. Independent analyst Alistair Strang gives his assessment of their potential.

30th April 2024 07:38

by Alistair Strang from Trends and Targets

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We find ourselves asking “will winter ever end” as this one just keeps reminding us it isn’t over. Typically, here in Argyll, deer cease being a hazard by April as they retreat ‘up the hill’ above the 500 foot level. This year, they have (so far) failed to do so. The confusion of the recent weather matches our confusion over insurer Beazley (LSE:BEZ)’s share price.

Back in February, the market decided it was time for recovery, the price being gapped up solidly at the open of 22 February to an impressive 623p. We hoped it would follow our deer, scampering up hill. But a month later, things fizzled out before the end of March with the price now looking at risk of some slight reversals.

The immediate situation threatens price movement below 629p treating investors to a drop to around an initial 591p with our secondary, if broken, at 580p.

The visual proximity of these target levels tends to suggest we shall be looking for a bounce should such reversals take place. Visually, a series of dance steps such as this would “close” the gap from 22 February, something there’s no hard and fast requirement for but, nonetheless, being one of these tenets of faith among certain traders.

But we’re simply not sure reversals are on the immediate cards.

Share price movements on Monday proved distinctly odd, the sharp recovery from movements at the open of trade lending a suspicious tint to our thoughts. It almost felt like “they” were trying to fake traders into believing a drop was coming or perhaps going after someone’s substantial stop loss at 629p with the intention of freeing up some shares.

Should this prove to be the case, above just 661p should next prove interesting as it calculates as being capable of a lift to an initial 688p with our longer term secondary, if exceeded, working out at a future 755p.


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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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