Can G4S shares pull out of this nosedive?
The recent plunge for G4S was distinctly worrying, so our chartist has taken a closer look.
9th April 2020 08:43
by Alistair Strang from Trends and Targets
Share on
The recent plunge for G4S was distinctly worrying, so our chartist has taken a closer look.
G4S Plc (LSE:GFS)
The recent plunge to 70p was distinctly worrying, this taking the price below a very critical level for the longer-term.
Normally, we would have hoped 96p would provide a floor level, but this theoretical trigger level was broken on the initial plunge.
Therefore, despite a bit of a bounce, we're concerned for the future and can present some "what if it all goes wrong" numbers.
Now below 70p suggests the potential of further travel down to 43p next, a point where a real bounce can be hoped for. But should 43p break, ultimate bottom works out at 6p.
If a turnaround in the share price is hoped for, we initially need to see it trade above 102p.
Such an event allows a trigger to an initial 125p.
If exceeded, our secondary calculation works out at 150p.
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.
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.