Wickes shares worth tracking after show of genuine strength
There's been little to cheer during its time as a listed company, but the DIY chain appears to have begun a recovery. Independent analyst Alistair Strang reveals what his charts say.
7th February 2024 07:41
by Alistair Strang from Trends and Targets
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There is the hope, certainly from a chart perspective, that Wickes Group (LSE:WIX) shall experience a surge in their share price.
It broke a downtrend in December last year, enjoyed an initial surge followed by an inevitable fall back. The price to which it fell back was 137.5p, just above the level of trend break at 137p. This implies some genuine strength may in fact be evident.
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Currently trading around 157p, it looks like above 160p should next trigger price recovery to an initial 173p. Visually, there’s a vague threat of some hesitation at the 173p level but, given previous hiccups at this point only lasted a short time, we’re not inclined to expect real dramatics.
In the event the 173p level is exceeded, our longer-term secondary calculates at a future 204p along with almost certain stutters in the price cycle.
If Wickes intends any attempt at self immolation, below 137p would be a problem, risking triggering reversal to an initial 116p with secondary, if broken, at 105p and hopefully a bottom.
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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