Does Diageo measure up for your portfolio?
Independent analyst Alistair Strang looks at the global drinks company, which has just announced a fresh turnaround plan.
11th August 2026 09:08
by Alistair Strang from Trends and Targets
Reuters recently reported that the food safety regulator in India has barred two of Diageo (LSE:DGE)’s popular whisky brands, alleging misleading declarations about the maturity of the liquor and the use of artificial flavouring.
Should this allegation prove to damage their reputation, things may turn nasty for the share price. However, the markets invariably love to discover an excuse to plunge the knife, so we think some care may be needed with Diageo in the months ahead.
This being the case, below 1,370 should ring alarm bells, triggering weakness towards an initial calculation of 1,252p. If broken, our secondary works out at a quite silly “bottom” of just 300p, matching the share price from the 20th century!
- Invest with ii: Open a Stocks & Shares ISA | Top ISA Funds | Transfer your ISA to ii
Alternately - and visually more believable - above 1,428 should trigger movement to an initial 2,143 with our secondary, if bettered, at 2,420p. There are obviously potentials above such a level but common sense demands we should once again stir the tea leaves.
In summary, we suspect Diageo may be 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.
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.