Marston's: why you should watch these important target levels

With talk of some pubs reopening this month, our chartist studies prospects for this chain of boozers.

Marston's (LSE:MARS)

"You wouldn't believe the dream I had last night?" This comment started the day, something doubtless experienced throughout lockdown kingdom as we try and find something new to talk about.

My wife rushed into the telling of her dream before it vanished, giving an incredibly detailed, complex, and altogether unlikely story of visiting her mum in the care home.

Married life has taught me that a few things are pretty sacrosanct and interrupting the retelling of a dream is unwise.

Retelling this story is somewhat better than relating a couple of dreams of utter frustration, sadly featuring share prices which refused to go up regardless of numerous positive reasons.

Thankfully this no longer seems the case as there appear plenty of reasons to believe the market is currently "coming back".

One such share is Marston's  (LSE:MARS), with recent price movements giving a pretty solid push-back against all the doom and gloom fears, certainly in the Scottish Highlands.

To be blunt, unpleasant numbers of landlords are suggesting they do not intend re-open once lockdown ends.

On the other hand, Marston's, who describe themselves as the UK's leading independent brewing and pub retail business, appear to have a share price ready to celebrate the end of lockdown.

Our normal rules had defined 68p as a pretty major point of interest and suggested that if the share actually closed above such a level, there was a reasonable chance the recent Covid-19 drop to 18p was 'bottom' and some true recovery can be hoped.

This being the case, the immediate situation hints at movement now above 83p attempting an initial 90p with secondary, if exceeded, a more useful 113p.

We are fairly interested in the potential of 113p for several reasons, suspecting this level shall prove capable of some pushback.

Firstly, it suggests an attempt at the long-term downtrend (blue) can be expected later this year.

Secondly, it is slightly above a glass ceiling level shown in a red circle on the chart. To cut a long and boring story short, only closure above 113p is liable to prove a really big deal for the long-term as a growth cycle to 196p calculates as very possible.

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.