Aston Martin shares and the case for a recovery

Independent analyst Alistair Strang reveals what his charts say about the luxury FTSE 250 automotive manufacturer.

18th December 2024 09:16

by Alistair Strang from Trends and Targets

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An Aston Martin car outside the company HQ and production plant in Gaydon, England

It was certainly interesting to see Aston Martin Lagonda Global Holdings Ordinary Shares (LSE:AML)'s share price experience a 4% rise from nowhere on 17 December.

We will pay attention if the share price exceeds just 106.5p anytime soon as this should trigger price recovery to an initial 118.5 and probable hesitation, as the price donks against the blue downtrend since 2023.

Our secondary, if the share price manages to close above blue works out at a future 131p, an indication that the price may have finally started some proper recovery.

Aston Martin performance chart

Source: Trends and Targets. Past performance is not a guide to future performance.

We do suspect some hesitation around the 131-141 level, if only due to the share price being forced down at the end of September. It is probable that it will next require share price closure above 121p to confirm that a recovery cycle has commenced.

Should things intend to go wrong, the price needs to reverse below 100p, as a visit to 83p has become possible with our secondary calculating at a visually ridiculous 50p.

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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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