Taylor Wimpey shares: Good news and bad news
Static for some time, our chartist investigates potential for Wimpey shares to break the trend.
13th November 2019 08:37
by Alistair Strang from Trends and Targets
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Static for some time, our chartist investigates potential for Wimpey shares to break the trend.
It's worth taking a step back to visually ascertain "the problem" at Taylor Wimpey (LSE:TW.), and there's clearly an issue around the two quid level, 212p to be precise.
Whether we call it a glass ceiling or a horizontal trend, the market appears to find something really offensive about the 212p level.
Bizarrely, this chain of events started in December 2007 and creates a situation where "the Big Picture" suggests closure above 212p should trigger a longer term cycle which leads to an initial 308p. If bettered, our secondary calculation is at 410p.
Perhaps the strength of this potential is also why the market is refusing to let the share close in "safe" territory!
Near term, we shall be interested if TW manages above 178p as growth to an initial 188p looks possible.
If bettered, secondary is at 198p. Importantly, above 198p will tend to suggest another stab at the glass ceiling of 212p.
Unfortunately, that's the end of the good news. More likely, we should fear weakness below 143p as this is liable to trigger reversal to an initial 134p.
This, unfortunately, breaks the uptrend since 2011 and as a result, if 134p breaks, "bottom" is liable to make itself known by 93p hopefully.
We also need to mention 18p as "ultimate bottom" if politicians get their way and trash the country's economy.
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.
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