Interactive Investor

Bet on this stock in race for green energy

9th March 2022 07:20

Alistair Strang from Trends and Targets

Shares in this wind turbine maker have started to rise sharply as the West commits to reduce its reliance on Russian energy. Independent analyst Alistair Strang reveals his new forecast.

Our weekly glance into Europe revealed wind turbine designer and manufacturer Nordex SE (XETRA:NDX1) has a share price which appears on the verge of doing quite well again.

A day spent across on the mainland, visiting Edinburgh, revealed with painful clarity how intrusive these machines are, spreading across the boring landscape beside the motorway. Thankfully, living in a National Park here in Argyll, we are pretty well insulated from the visual blight windfarms bring.

Obviously, the Ukraine conflict has been having an affect on share prices, but there’s something slightly interesting about the picture Nordex presents. Their share price obviously exceeded the pre-pandemic level toward the end of 2020, the period since experiencing strong growth.

We’d expected this period of growth to fade away around the €26 level, but the share price almost made it to €30 before experiencing some reversal. Then something quite odd happened.

Once a series of “higher highs” had been explored, the price commenced reversal, rather neatly down to the level achieved pre-pandemic. We wonder if this sort of behaviour should be anticipated in the UK, when shares start to exceed their pre-pandemic highs. Perhaps, of course, the Russian invasion shall derail optimism.

    Source: Trends and Targets. Past performance is not a guide to future performance

    Near term, the situation feels like movement above €18 should promote price growth to an initial €21.8, with secondary, if bettered, at €30. In fact, if we’re generous, we can point to a future €37 as exerting a really distant attraction for this share price. 
    For everything to go horribly wrong for Nordex, the share price needs below €12.

    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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