Building an interest in Wickes shares?

It's been a rollercoaster year for the DIY chain, but independent analyst Alistair Strang thinks Wickes is worth keeping an eye on.

11th December 2024 07:44

by Alistair Strang from Trends and Targets

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We like Wickes Group (LSE:WIX) and, historically, we’ve often found the company better for odd-ball bits and pieces, the difficult hardware and tools often ignored by an increasingly corporate B&Q mindset. However, their share price hasn’t followed our preference for the company. In fact, quite the opposite.

Perhaps a light at the end of a tunnel is currently appearing, so perhaps Wickes shall prove worth keeping an eye on.

Currently, above just 157p suggests the potential of price recovery to an initial 162p with our secondary, if bettered, at a future 176p along with almost certain hesitation as this matches the height of previous highs.

But from a longer-term perspective, closure above 176p will be treated as important, moving the price into a zone where longer-term movement just above the 200p level will make a lot of sense.

If things intend go wrong, Wickes needs below 143p for panic, allowing reversal to an initial 132p with our secondary, if broken, calculating down at an eventual possible bottom of 117p.

For now, we think Wickes shall prove keeping an eye on from a gains perspective.

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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. 

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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