Can dividend stock SSE deliver share price gains too?
22nd July 2021 07:58
by 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.
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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.
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