Interactive Investor

Can Crest Nicholson soon reach its pre-pandemic high?

7th September 2021 07:44

Alistair Strang from Trends and Targets

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The shares have doubled in the past year, but independent chartist has checked the tea leaves for signs of further upside potential.

FTSE 250 member Crest Nicholson (LSE:CRST) is a 55-year-old building company focussed in the south of England. According to their website and a quick trawl of Google news, the company builds a surprising range of properties of varied size, also collaborating with housing associations, financial institutions, and Homes England.

Their share price has experienced considerable, understandable trauma since the pandemic crash last year and has not yet recovered to the pre-pandemic highs above 500p. 

The good news, despite recent lethargic behaviour, is that there are early signs some gains should be coming soon. 

Presently trading at around 423p, we’d hope movement above just 431p should trigger recovery toward an initial 455p. As the chart shows, this should challenge the blue downtrend of the last five years, hopefully creating a scenario for longer term fireworks.

Closure above 455p will doubtless be crucial, expecting a gain thereafter toward 499p. In the event 499p is exceeded, we calculate a cycle should commence toward a longer term 640p. Visually, given prior highs back in 2017, we’d anticipate some hesitation, should such a level make an appearance.

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. 

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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