Can Kingfisher shares bounce off this nine-year low?

by Alistair Strang from Trends and Targets |

The B&Q owner's share price has taken a hammering of late. Our chartist looks out for rebound potential.

It appears weakness now below 201p on Kingfisher (LSE:KGF) shares should flush the price down to 184p next, a point at which we'd expect some sort of rebound. But take extreme care, should 184p break as it could easily drain down to 166p next.

Worse, from a big picture perspective, the share price is already trading in a region where negative news could drip the value down to a bottom, hopefully, at 142p in a blink.

For any near-term bounce to prove viable, the share price requires exceed 222p to enter a cycle towards an initial 235p.

If exceeded, we'll be suitably convinced bottom is "in" (for now) and hope, if 235p bettered, our calculation of secondary at 249p shall prove valid.

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, and 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
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio