Shareholders receive one of the most generous dividends around, but independent technical analyst Alistair Strang believes the share price could be about to get exciting.
It was a bit of a surprise to discover M&G Ordinary Shares (LSE:MNG) is now starting to look interesting. A few weeks ago, we covered Prudential (LSE:PRU), completely unrelated to Prudential Assurance of which M&G are the direct parent company. Perhaps there’s something about the word “Prudential” which the markets currently likes, especially as M&G currently look capable of enjoying some share price growth.
Their company share price appears on the crux of becoming interesting, the only meaningful movement so far this year being due to the Russian drop in March.
Now above just 222p looks mildly useful, apparently capable of triggering recovery to a near term 229p. Above this level and the price risks becoming even more exciting, our calculations producing a secondary target at 252p and almost certain hesitation, thanks to this coinciding with previous highs back in 2020 and 2021.
Source: Trends and Targets. Past performance is not a guide to future performance
One feature about such hesitation is it’s easy to assume it shall be inspired by the Babe brigade, those folk who bought at previous highs and opting to ‘bail at break even’.
Generally, when such selling pressure appears, its effects tend to diminish with time and, as this shall be the share price’s potential third attempt at this level, we’re not entirely nervous by suggesting above 252p should fuel longer-term price growth to 280p and beyond, new all-time high levels.
If everything intends to go horribly wrong, the share price currently needs a slump below 178p. Weakness such as this risks provoking a downward spiral to an initial 142p with secondary, if broken, at 120p and hopefully a trampoline bottom.
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.
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