Time to watch Prudential shares very closely
Last year's impressive rally has partially unwound, which has piqued the interest of independent analyst Alistair Strang. Here's what his charts may tell us about the future.
30th June 2026 07:29
by Alistair Strang from Trends and Targets
One of our 'things' is to watch carefully for a share price reacting to a trend. In the case of Prudential (LSE:PRU) there’s no doubt the Blue downtrend since 2018 has assumed some importance to the share price.
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Shares in the Asia focused insurance giant are currently surfing the trend, creating a mildly scary image. But it is worth pausing to consider how the price ended in this situation.
It dropped below the trend at 964p, then achieved some slight recovery above the trend a few days later, then paused. Usually (and in this instance) some confidence can be taken with a price trading above the level of the trend break. In other words, the opposite of a red flag.
If we assume confidence for Prudential, a share price next above just 1,020p (the high following the trend break) should trigger near-term gains to an initial 1,096p with our secondary, if bettered, at a pretty useful looking 1,203p. This secondary becomes a pretty big deal, demanding the share price close above 1,203p to open a long term route toward the 1,400p level.
We are optimistic for gains.
However, if things intend to go wrong, the price only needs below 962p to cause problems, opening a scenario where reversal to an initial 837p looks possible with our secondary, if broken, down at 734p and hopefully a price rebound. Visually, this makes little sense.
Prudential is looking relatively hopeful for the future, though crossing fingers may not be the worst strategy.
Source: Trends and Targets. Past performance is not a guide to future performance. Important: Trends and Targets charts only incorporate official share count consolidations, ignoring rights issues where investors have a choice as to whether to participate.
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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