Interactive Investor

Can Kier Group shares build on substantial gains?

20th July 2023 07:29

by Alistair Strang from Trends and Targets

Share on

Their share price is up over 40% already in 2023 and at its highest in over a year. Independent analyst Alistair Strang's software gives reason for optimism.

construction build house 600

    Kier Group (LSE:KIE)'s latest price movements are worth studying, as when we reviewed them a year ago, we’d proposed 70p as an ultimate bottom, this being a number below which we couldn’t calculate.

    As September ended in 2022, the share price stumbled below 70p, making us fear for the worst as we couldn’t realistically work out anywhere else for the price to go. The share has managed to enact everything possible to confuse the market, but by the end of April this year, some hope was discovered and Kier's share price is on the edge of doing something useful.

    There are some fairly solid signs the construction industry is finally starting to give hope for investors and Kier could join in any upward surprise movements.

    The immediate situation is quite interesting, suggesting above 86p should now promote the concept of price recovery to an initial 99p. Our longer term secondary, if 99p is exceeded, calculates at 121p and some probable hesitation, if only due to prior highs.

    For everything to go horribly wrong, the share price now needs to wither below 60p to give an early impression of real trouble. Visually, it looks like optimism should be the order of the day for the future.

    kie200723.jpg

    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.

    Get more news and expert articles direct to your inbox