Interactive Investor

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

Alistair Strang from Trends and Targets

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.

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. 

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