With its shares now back to pre-pandemic prices, independent analyst Alistair Strang explains why he remains positive.
Never forget, when viewing a chart, to zoom out to the maximum possible as the Big Picture can be revealing. Since our glance at Marks & Spencer Group (LSE:MKS) a year ago, the price has performed according to expectations and now offers further hope for the future.
The share is currently stuttering as it frolics playfully at the same value achieved, pre-pandemic.
However, as the chart below shows, the price has exceeded a very obvious downtrend since 2015. In itself, this is never a guarantee of a coming uptick in values, but in addition to this, the share has also bettered is initial high, since breaking the downtrend. This allows considerable hope for the future, perhaps indicating the threat of supply chain trauma may prove unfounded.
- M&S shares: the odds of a surprise recovery
- Why reading charts can help you become a better investor
The immediate situation suggests strength above 189p should now make an attempt at 211p next, solidly breaking the high before everything went wrong in 2020.
With closure above 211p, we can calculate a longer-term potential at 271p, a point where we’d really need take another look at M&S movements.
For everything to go wrong, the share price needs below 130p, risking reversal to 87p. Currently nothing on the chart below suggests this is a risk.
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.