A European heavyweight share set to power higher
A seven-year uptrend is likely to continue at one of Europe's biggest energy companies, argues independent analyst Alistair Strang. Here are his new numbers spelling out potential upside.
23rd November 2023 07:39
by Alistair Strang from Trends and Targets
Share on
A quick trip through the European markets threw up RWE AG Class A (XETRA:RWE) as being of interest - the world's second-largest offshore power generation company and Europe's third-largest in renewable energy.
Formed in 1898, the company appears to be flourishing and is active virtually everywhere except South America and Africa.
- Invest with ii: Buy International shares | How to buy German stocks | Cashback Offers
Our interest in their share price is based on movements since October as it appears possible that RWE's share price is about to improve, albeit not by a massive amount. Currently, it looks like movement above €39 could trigger share price recovery to an initial €42.
In the event the share price actually closes around such a level, it shall exceed a downtrend which dates back to 2008, placing the share in a zone where a future €54 becomes believable.
For everything to go horribly wrong, the price would need break below Red on the chart, around €32 at present, as this risks promoting reversal down to an initial €29 with secondary, if broken, at an improbable looking €25.
We suspect this intends to head upward.
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.