Interactive Investor

Here's why Qinetiq shares look 'interesting'

Last week's bounce has sparked attention from investors. Our chartist looks for other catalysts.

30th July 2019 10:09

Alistair Strang from Trends and Targets

Last week's bounce has sparked attention from investors. Our chartist looks for other catalysts.

Qinetiq (LSE:QQ.) 

If we accept US market experience under Mr Trump as gospel, it appears a look at UK defence industries may be justified. For this reason, we took a hard look at Qinetiq (LSE:QQ.) as their performance over the last 18 months has already been "interesting".

The immediate situation is fairly straightforward. Price movement now exceeding 307p should prove capable of targeting an initial 319p. Surprisingly, we note we already have three separate criteria demanding movement to the 319p. 

Visually, it also makes sense despite the strong potential of a glass ceiling forming at such a level. 

Only with closure above 319p does our secondary calculation at 335p start to make sense, along with a new all-time high.

Qinetiq's share price requires to break below 267p to spoil the party, this tending to nudge the price in the direction of 214p initially. If broken, secondary is at 187p.

For now, we'd be fairly comfortable with the suggestion 319p intends to make a guest appearance fairly soon. As for the longer-term, should the company follow the example of several US contractors, apparently we are supposed to believe the really longer-term attraction comes from 365p.

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. 

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