Interactive Investor

There’s hope for Prudential shares now

After a roller coaster five years, Pru shares currently trade at prices rarely seen over the past decade. Independent analyst Alistair Strang has run the numbers and believes there's a chance its fortunes will improve. 

28th March 2024 07:41

Alistair Strang from Trends and Targets

Potentially, there is some good news on the horizon for Prudential (LSE:PRU) shareholders.

From a big picture perspective, since 2020 there has been a need for the share price to close a session below 736p to drive a final nail in its coffin. However, a few days ago when the price collapsed down to 719p, it actually closed the session at 745p, failing to pull a serious trigger. Our inclination is toward some hope that we’ve just seen the price achieve a bottom.

This being the case, above 768p has the potential to provoke some fun and gains, allowing price recovery to an initial 784p with our secondary, if beaten, at a significant future 837p.

We’re inclined to treat the potential of a future 837p as significant as it risks allowing the share price to nudge above the Red uptrend which dates back to 2009.

However, if things intend to go wrong, below 747p now risks a visit to an initial 736p with our secondary, if broken, calculating at 700p and hopefully a proper bounce.

Danger intrudes if 700p breaks as a third “it almost must bounce” level intrudes at 626p, a price which makes little visual sense as it’d take the share into a zone which threatens armageddon which shall be difficult to recover from.

For now, have a good long weekend and we’ll return on Tuesday.

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. 

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