Interactive Investor

Will this designer share get a make-over?

After a tough time for this retailer, our chartist looks at the opportunities for risk-based investors.

26th February 2019 10:01

Alistair Strang from Trends and Targets

After a tough time for this retailer, our chartist looks at the opportunities for risk-based investors.

Laura Ashley (LSE:ALY) 

It's funny how a dislike for a share can be formed. In the case of Laura Ashley (LSE:ALY), it was the case of owning a cottage built in 1702, combined with the lethal mix of a girlfriend and a fairly local Laura Ashley store. Neither the house nor the girlfriend remain in my life, only a lifelong distain for anything from "Laura Ashley".

However, the share price appears to be making an attempt to extract itself from an area where a bottom of 0.57p was essentially "best guess" for the future. As the chart highlights, some miracle has taken the price through the very obvious downtrend since 2015. Now, it resides in a zone where above 4.01p suggests continued recovery to 4.35p can be hoped for. Better still, our secondary if such a point exceeded, now calculates at 5.35p, a level where the visuals indicate it risks some hesitation.

To bring some sanity to the conversation, absolutely nothing is suggesting a return to prior highs is possible. However, it is certainly puzzling to see the share extract itself from the controlling downtrend with such flamboyance, especially as the offer is being reported at just 2.748p per share.

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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