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
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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.
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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.
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