A close-up on Rentokil Initial shares
11th May 2022 07:38
by Alistair Strang from Trends and Targets
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Shares in the pest control firm have been a winner for over a decade, and independent analyst Alistair Strang thinks he's spotted the point at which they could bounce back following recent weakness.
It's worth reviewing Rentokil Initial's (LSE:RTO) share price as it’s been a while and doubtless, with a return to offices, the company should surely experience an upsurge in business.
Currently, Rentokil's price doesn’t entirely share my optimism for their future. It appears weakness below 508p risks triggering some near-term reversal down to an initial 493p with secondary, if broken, down at 472p and a very probable bottom.
Curiously, it feels like overall market conditions are presently inhibiting the share price, as above 550p (Blue) is supposed to trigger imminent recovery to an initial 609p with secondary, if bettered, at 627p and some hesitation.
In terms of panic, we’d certainly have concerns should the price manage to close a session below 472p. This risks being quite problematic, signalling the potential of reversal to a trend breaking 445p, unfortunately finding itself in a zone where an eventual bottom at 261p calculates as possible.
For now, we suspect 472p shall prove to be an eventual bounce point and thus, suspect this shall be a share worth watching.
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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