Are JD Sports shares worth a punt?
After losing half its value in the past six months and trading at a five-year low, independent analyst Alistair Strang looks at the sports gear chain's recovery potential.
26th March 2025 07:37
by Alistair Strang from Trends and Targets
When we reviewed JD Sports Fashion (LSE:JD.)last June, we issued the kiss of death to the share price, giving a final paragraph as shown below. It was a throwaway sentence “just” to cover ourselves as our article had been quite positive, pointing at a potential scenario toward 232p!
We said: "Our converse scenario risks reversal below 110p bringing a visit to an initial 99p with secondary, if broken, a less likely 82p."
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Needless to say, the criteria for price growth that was triggered matched our initial target level of 161p, then the price fell off a cliff, eventually triggering our drop scenario.
It’s now the case where JD's share price has actually broken below our 82p drop target, a price level which looked smugly accurate back in January of this year.
We’re now pondering whether the recent tumble to the 71p level shall prove capable of creating a realistic bottom, a price level capable of generating a bounce. Visually, we’d hope so but there is now a very real risk of below 71p promoting another drift down to an initial 64p with secondary, if broken, at 58p and hopefully an end to this drop madness.
We now have a serious issue at the 58p level, due to us being currently unable to calculate sensible targets further down without prefacing our results with minus signs. The circled gap in price movements tends to throw a massive spanner in the works when mapping price reversals.
On the basis that some optimism can be generated, if we use a positive final paragraph, it seems above just 83p should prove capable of triggering a surge to an initial 95p with our secondary, if bettered, at an eventual 104p and, visually, some hesitation. We shall certainly be interested if the market starts to gap the share price upward for any reason as we’ve an expectation this shall provoke a cycle of gains. If it happens.
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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