Here's how Stagecoach shares can travel north

by Alistair Strang from Trends and Targets |

This mid-cap has been stuck in neutral, but our analyst thinks it can accelerate if the price does this.

Stagecoach Group PLC (LSE:SGC) 

Stagecoach (LSE:SGC) shares are actually looking fairly interesting.
 
The most important facet of their price is at 94p. There are quite a few arguments which anticipated the price hitting such a level, but, instead, we suspect it is bouncing from a low of 113p. Perhaps the implication is of some real strength.

This situation now is fairly useful as movement above 141p looks capable of an initial 156p. Our secondary, if such a point is bettered, calculates at a trend testing 164p.

When we view recent recovery to move the share price above the long-term red uptrend, there is a hint the market wants it up.

The alternate situation is of weakness below 113p. This allows for reversal to 94p with secondary, if broken, at a ridiculous looking 20p. Only with price closure above blue (166p presently) does this threat recede.

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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