Interactive Investor

Here's where the charts say NMC Health shares are heading next

They slumped Friday and the shares remain volatile, but this analyst has a good indicator of direction.

10th February 2020 08:38

Alistair Strang from Trends and Targets

They slumped Friday and the shares remain volatile, but this analyst has a good indicator of direction.

 

NMC Health PLC (LSE:NMC) 

Judging by some emails, internet chatroom gossips are suggesting an expectation of "something" happening here.

We need to stress, we've only been asked to review the numbers against this, not to check any fundamentals or whatever on NMC Health (LSE:NMC).

Friday's drop was certainly scary, giving considerable food for thought.
 
Firstly, we calculated a logical bottom against this at 696p. It closed Friday at 700p, so no immediate reason for panic, aside from the important detail the share price actually moved below 696p during the session.

It did so with a spike downward at 4pm, almost like the market was snatching a "sell order" prior to movement in the other direction!

There is now some fairly serious danger, should the share now trade below 678p as it enters a zone where the big picture calculates with an initial target of 522p, followed by a logical bottom of 6.5p.

Visually, this is quite absurd, made possible by the massive drop last December.

However, the share did not close below 696p, so we're hopeful some sort of bounce is coming.
 
Near-term, any excuse to better 806p calculates with an initial ambition of 871p; a fairly sedate ambition but worthy of attention is the price manages above such a level.

Our secondary calculates at 1,162p but, realistically, if positive news is involved, it could accelerate pretty swiftly to 1,527p.

This is a heck of a jump, made possible by the severity of the share price reversals.
 
Our suspicion is some sort of rebound is expected anytime now. Here's hoping!

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. 

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.