Can Fevertree Drinks continue bounce from 8-year low?
Having slumped last month to their lowest since July 2016, shares in the upmarket tonics firm have managed to regain some lost ground. Independent analyst Alistair Strang assesses the odds of a sustained recovery.
1st October 2024 07:15
by Alistair Strang from Trends and Targets
It certainly seems Fevertree Drinks (LSE:FEVR) needs a change of fortunes due to their sales proving flat during the first half of 2024. Invariably, the company blame the appalling weather we’ve been gifted this year for their rotten sales, but as we’re now looking the festive party season in the eye, perhaps a change in fortunes may be possible.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Unfortunately, according to historical share price movements, we’re not enthusiastically looking for surprise recovery.
The current situation hints of movement below 770p triggering reversal to 727p and perhaps a bounce. The danger comes if 727p breaks, calculating at 579p, again with a chance of a bounce but, should 579p break, bottom almost must work out at an eventual 410p.
Should the share price ever decide to have fun, it needs to close a session above just 854p to trigger recovery to an initial 908p with our secondary, if beaten, a visually sane 1,072p.
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.Â
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.