Stock needs to break this level to significantly increase the odds of a long rally.
The share price of ITV (LSE:ITV) is looking pretty optimistic for some reason.
Despite a personal distrust of such a terrestrial TV company, presumably it is doing something to capture the tablet revolution. Near term, it certainly looks like strength exceeding 122p should propel the share price towards an initial 133p, along with a collision against the downtrend since 2016.
It will become utterly crucial for the share price to actually close a session above 131p to allow us to present some quite useful numbers for the longer term.
Closure above 131p creates a scenario where an initial 173p is expected, with secondary, if bettered, at 173p. We fear, given historical behaviour around the 173p level, some stutters shall occur should such a number make itself known.
- The Week Ahead: Rolls-Royce, Just Eat, Morrisons
- These shares are back in favour as tech stocks dive
- Why reading charts can help you become a better investor
After all, there's bound to be a bunch of frustrated folk who bought around this level a few years ago desperately hoping this was the time the share price would go up. Invariably, this select gang will bail a share at break even, creating selling pressure.
In the case of ITV, we suspect this shall be an erroneous judgement for the long, long, term, if only on the basis that the fourth attempt will be the charm.
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.
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.