A masterclass in predicting share price movements

by Alistair Strang from Trends and Targets |

This share plays by the charting rules, but which way does our technical analyst think it's heading now? 
 

Our July 2018 report on Ryanair (LSE:RYA) provided a masterclass in predicting share price movements. The image below highlights something we usually don't bother giving but the three drop levels achieved were quite vivid. 

What's next as we always like a share which plays by "the rules"?

Source: Trends and Targets      Past performance is not a guide to future performance

First and foremost, there's the issue with our "bottom" at 10.7. Obviously, this level was broken and remains a worry, despite recovery in the period since. 

The situation now exists of weakness below 9.83 expecting travel to 8, perhaps even 7.5 euro. The proximity of the two targets almost suggests the airline must bounce at such a level (if achieved) as our ultimate bottom is down at a silly looking 1.85.

On a more positive note, it's currently trading around the 11 euro mark, needing only above 11.75 to enter a cycle to an initial 12.45. 

While not particularly impressive, should it manage above 12.45, longer term recovery to a trend testing 13.9 is expected. We do expect the blue line on the chart below to introduce some sort of hindrance to any rise, if only due to the downtrends quite contrived nature.

For the near term, we suspect it shall continue some recovery but, until it closes a session above 12.45, caution is advised.

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, and 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.

get more news and expert articles direct to your inbox
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio