Is dividend star M&G waking from hibernation?
25th April 2023 06:14
by Alistair Strang from Trends and Targets
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Shares in this high-yielding financial services firm haven't set the market alight in recent times, but independent analyst Alistair Strang sees signs of a possible breakout from this sleepy behaviour.
We suspect some of the original Prudential (LSE:PRU) DNA remains embedded with M&G Ordinary Shares (LSE:MNG) Plc (Municipal & General Securities Co), despite them demerging in 2019.
If jumping out of bed and checking the markets at the open is your thing, neither Prudential nor M&G ever appear to justify a quick glance, each enjoying price movements which always seem to take an age to occur.
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Perhaps some of this lethargy dates back to 1931, when M&G held shares in 24 companies, a fixed portfolio which had a fixed lifespan of 20 years. Nowadays, their share price is a little more flamboyant, currently trading around 202p and achieving a bandwidth of 70p of movement, 35p up and 35p down since August 2021. There are early signs a change of pace may be in the offing, the share price needing to close a session above 207p and ideally triggering a breakout from this sleepy behaviour.
Closure above 207p should hopefully trigger gains to an initial 228p and a challenge of the immediate Blue downtrend. In the event 228 is exceeded, hopefully we shall witness ongoing traffic toward 252p and the hope of a significant change of pace for the longer term.
Visually, there has been a pretty obvious glass ceiling at such a level for years and, on the basis of third time lucky, it’s entirely possible a run up to an amazing looking 320p may commence. Goodness knows how long it may take!
If everything intends to go wrong, the share price needs to trade below 175p (Red) to risk promoting low level hysterics, calculating with the potential of reversals to an initial 140p with secondary, if broken, an eventual bottom down at 94p.
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.
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