Interactive Investor

Can dividend stock SSE deliver share price gains too?

22nd July 2021 07:58

Alistair Strang from Trends and Targets

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Chartist Alistair Strang assesses whether shares in the energy company can reclaim the heady pre-Covid heights of February 2020. 

With energy major SSE (LSE:SSE) enacting their AGM today in Perth, Scotland, we’re curious whether the largely scripted event shall produce anything interesting. There’s been some talk of shareholder disquiet over the CEO’s salary, a frequent thing prior to corporate AGM’s. Invariably, any shareholder revolt in the room comes to nothing, once fund’s share of the votes are taken into account.

Certainly, in the period since the Covid drop, the share price has marginally outperformed the FTSE 100 of which it is a member but, realistically, failed to set the heather on fire. 

Of course, it can be argued this is exactly how it should be with this type of company, baby steps rather than vibrant volatility. A glance at the corporate website reveals the company is strongly committed to Green energy, big fans of wind farms offshore, all the right noises for this day and age.

Unfortunately, at present, their share price isn’t in a particularly happy place, recent movements suggesting ongoing weakness below 1,468p threatening a trip to 1,428p, a level at which the visuals suggest a bounce should occur. Importantly, should 1,428p break for any reason, we calculate a serious risk of a reversal cycle commencing down to 1,273p and hopefully “bottom”.

Our more positive scenario, which we suspect shall prove justified, given the companies behaviour since the pandemic drop, asks for share price movement above 1,560p to provoke growth toward an initial 1,635p. If exceeded, our longer-term secondary calculates at 1,754p, amazingly a new all-time high which shall demand we once again stir the tea leaves for a look at the future.

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.

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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