Interactive Investor

How M&C Saatchi shares could halve again

Things have gone from bad to worse for the AIM share, so our chartist examines the possible outcomes.

5th December 2019 09:19

Alistair Strang from Trends and Targets

Things have gone from bad to worse for the AIM share, so our chartist examines the possible outcomes.

M&C Saatchi

M&C Saatchi (LSE:SAA) share price movements, while dire, appear to be provoking discussion about a possible takeover attempt anytime now.

From our viewpoint, the share has not yet reached bottom as it appears on track for 40p.

Certainly, we would expect a bounce around such a level, if only due to it being impossible to calculate below such a point.

To get out of trouble, any miracle rebound needs to exceed 161p currently, visually an impossible task without the presence of game changing news.
 
We suspect, quite strongly, this shall prove worth keeping a close eye on in the days/weeks ahead.

While the low on the 4th of 69p was certainly "close" to our 40p calculation, from an immediate perspective below 69p should initially target 63p as "last chance saloon".

If 63p breaks, a journey down to the 40p level looks inevitable.

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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