Can JD Sports Fashion shares continue uptrend?
After kicking off 2024 with a profits warning, shares in this sports clothing chain are up over 30% since February. Alistair Strang studies the charts for clues about what happens next.
5th June 2024 07:32
by Alistair Strang from Trends and Targets
JD Sports Fashion (LSE:JD.) has experienced a pretty awful six months since our review in January.
While the share price did achieve our upward targets, at no time has it closed above our secondary of 136p, so we’re a bit jaded if trying to report confidence for the future. There are some early signals something positive may be about to happen.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
We’ve chosen to assign 137p as a major trigger level, believing closure above such a level should now prove fairly game changing. Such a miracle would dump the share in a zone where we can calculate future recovery to an initial 161p with secondary, if beaten, at 167p and some probable hesitation, if only due to the presence of the Blue downtrend since 2022.
Surprisingly, in the future, closure above this historic trend shall place the share at the mercy of a long-term attraction from 232p!
Our converse scenario risks reversal below 110p bringing a visit to an initial 99p with secondary, if broken, a less likely 82p.
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.