ITV: the share price is looking surprisingly optimistic
Stock needs to break this level to significantly increase the odds of a long rally.
9th March 2021 08:44
by Alistair Strang from Trends and Targets
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Stock needs to break this level to significantly increase the odds of a long rally.
ITV Plc
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.
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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.
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