Interactive Investor

Can Man United's share price climb out of trouble?

With pro football on hold and United's share price diving, our chartist gets tactical with the numbers.

7th April 2020 08:48

Alistair Strang from Trends and Targets

With pro football on hold and United's share price diving, our chartist gets tactical with the numbers.

Manchester United (NYSE:MANU)

It was something of a surprise to discover Manchester United (NYSE:MANU) are listed on the New York Stock Exchange, their share price behaving with greater probity than witnessed a few years ago when we covered Glasgow Rangers listing, an offering which ended in tears and tantrums.

The debate continues, is the current Rangers Football Club an entirely new business or one justified in displaying trophy's won by the original team?

An article on players salaries informed us, alongside an obvious risk of Sky TV wanting their money back for games unplayed, some trouble is queuing up to give football clubs a bit of a kicking.
 
For Manchester United, we've allocated a trigger level at $11.4, the scenario suggesting weakness below such a level allows a shot in the direction of $9.2.

If broken, our secondary calculation (and the point at which we'd really hope for a bounce) works out at $5.2.

There's a very big problem if any initial surge breaks below $5.2 as we cannot comfortably calculate an ultimate bottom.

Perhaps $0.4 will suffice, perhaps not.

Regardless, it looks absolutely absurd. Equally difficult for the naked eye to digest (?) is the downtrend since 2018 as it suggests Manchester's share price needs to exceed $19.1 presently to suggest it's climbing out of trouble.

At present, the price is showing an unhealthy fascination for the uptrend (red) since 2012, the price oscillating above and below this historical remnant.

This sort of holding pattern, following a previous break of a trend, never fills us with confidence.

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. 

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