Should you take a contrarian punt on Kier Group shares?
After yesterday's spectacular crash, our chartist believes Kier shares must not close below this level.
4th June 2019 09:20
by Alistair Strang from Trends and Targets
Share on
After yesterday's spectacular crash, our chartist believes Kier shares must not close below this level.
Kier Group (LSE:KIE)
We received a few emails, asking if Kier Group (LSE:KIE) was at "bottom" following the thrashing their share price received. We suspect last months news of their Finance Director "stepping down" should have provided sufficient warning something was brewing but a minus 41% day was not fun to watch.
Amazingly, there is a chance it has indeed bottomed at 157p and we'd normally hope for a bounce at this level. There is one important warning worthy of consideration and it's fairly simple.
If, for any reason, the price now closes below 157p, we can calculate 70p with some bottoming potentials. And that's it. Anything else produced now is prefaced with a minus sign.
In normal circumstances, we'd hope 157p shall indeed produce some sort of rebound and anything now continuing above 176.5p calculates with an initial target at 187p.
If exceeded, our secondary comes in at 195p. Only in the event of 195p being exceeded dare we start to suspect a rebound shall prove genuine as a surge to 234p becomes possible.
Instead, our suspicion is of 157p being used as "bottom" in the days ahead, essentially permitting the price to bounce around for a while within the 157p to 195p range.
By any standards, this looks a fairly useful trading range. But do remember, below 157p and our last chance saloon calculates at 70p.
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.