Despite it being the festive season, Diageo (LSE:DGE) continues to drip downhill, and now share price movement below 2,719p looks capable of a visit to an initial 2,572p with secondary, if broken, at 2,507p.
The proximity of these targets tends to suggest the share price is heading toward a level from which a rebound can be hoped, essentially anytime soon.
The implication of movement below 2,507p is pretty dire, dumping the share price into a zone where a potential ultimate bottom at a future 1,501p becomes possible.
Visually there’s nothing to back up such a dodgy calculation, but 2,255p (the halfway mark in a reversal cycle) certainly looks like it has to the potential to apply the breathalyser to any downward rush.
If Diageo is to supply any festive cheers, it’s possible for above 2,833p to promote share price recovery to an initial 2,911p with our secondary, if exceeded, calculating at a longer term 3,094p.
It might even challenge the downtrend since April and give the first solid clue the share price may be attempting to escape the current drop cycle. We’re not hopeful, and suspect a visit to the £25 quid level is on the cards.
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.
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