Here's why YouGov's share price looks problematic

Brexit has been great for this polling company, but something is puzzling our technical analyst.

YouGov (LSE:YOU) 

As our 'great nation' crawls pitifully toward elections or referendum, it's easy to remember we used to elect people who did stuff. A clear winner from the UK's political incompetence has been polling companies, so we're reviewing YouGov (LSE:YOU) as their share price is reaching new highs.

At present, YouGov is showing itself as a little problematical!

The big picture had given a "maximum" target level of 622p and the share price has come within such an ambition level, certainly in the range of a "margin for error" so beloved by their statistical people.

• This share is a class act and keeps on rising

Near-term, there's little doubt continued traffic above 611p should attain the 622p level anyway, but our puzzlement is due to a certain lack of market intervention at present.

Essentially, if the market wished YouGov to exceed 622p we would expect the share price to be manipulated upward at the open.

Instead, the best witnessed during August were a couple of little nods upward, one by 3p and another by 4p.

Neither movement is particularly substantial and makes us suspect that if 622p makes an appearance, we should expect some volatility around such a level, if only to generate future impetus for another rise.

Above 622p and we can calculate a secondary, a very suspect 640p. With the best will in the world, we cannot calculate higher.

Of course, just because we run out of numbers does not mean a price cannot go higher. Our arrogance has its limits but, generally, the market would already be stretching a price's potentials by gapping it up at the open.

To indicate trouble ahead, YouGov needs trade below 539p, this risking reversal to an initial 506p. If broken, secondary is at 471p. For now, we suspect it shall prove to be a short opportunity for a while, if 622p appears.

Visually, it will make sense if the price bounces between 545p and just above 600p for a while, at least until our wonderful leadership decide how firmly they wish to delay making another decision.

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.