Interactive Investor

Why SGL Carbon shares are grabbing so much attention right now

9th June 2022 07:18

Alistair Strang from Trends and Targets

Shares in this company have rallied over 20% in just a few days. Independent analyst Alistair Strang gives his view.

The carbon fibre industry is fascinating due to the sheer mass of applications in which this amazing product finds itself. For most of us, the only frequent reminder are Formula1 commentators moaning about how long it takes track marshals to brush carbon fibre away following a race track incident.

In reality, whether it’s aircraft, wind turbines, building insulation, prosthetic limbs, or even Lithium-Ion batteries, both carbon and graphite are found. Someone once described carbon as “the duct tape of life”, a pretty fair description.

The company SGL Carbon SE (XETRA:SGL) is one of the biggies in the field with 31 locations worldwide. Our weekly trawl of European traded shares which look interesting revealed something potentially positive for SGL.

Currently, trades above €7.4 should provoke further price recovery to an initial €8.2. This is where things have the potential to trigger a change in the share price’s fortunes.

Closure above €8.2 will place the price above the merciless Blue downtrend since 2012. Such a movement should prove sufficient for an attempt at €11.2 initially, along with some almost certain hesitation due to prior highs. However, should €11.2 be exceeded, we can plan for a longer term €14.8, along with a need to once again review the share price future.

For everything to go horribly wrong, the price needs crash below €4.85. Should such a tragedy occur, goodness knows how many race marshals shall be needed to brush up the mess!

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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