Chart analysis: what future holds for John Wood
Just weeks after the troubled engineering consultant sank to a new low, independent analyst Alistair Strang has run his software and come up with some new forecasts.
20th November 2024 07:15
by Alistair Strang from Trends and Targets
The behaviour of the John Wood Group (LSE:WG.) share price has proved how things can go wrong. When we wrote about Wood in March 2023, the share price was about 217p, and our last paragraph ended with a ridiculous looking 38p!
We didn’t believe the possibility, and our eyebrows shot up when the price hit 46p the other day.
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There’s little doubt the share price is probably in the region where internet chatrooms are recommending “it will never be as cheap again”, and so on. Of course, the company had also experienced a takeover bid, just before everything went horribly wrong.
From an immediate perspective, movements next below 46p now point at a potential rebound level of 41p. Should such a level break, the best we can do is propose an ultimate bottom of 13p.
If this share price intends to claw its way out of trouble, we shall be inclined to regard above 56p as owning some potentials for triggering movement to an initial tame 58.7p. Should such a level be exceeded, our secondary works out at 67p with a third level ambition an eventual 80p.
Visually, there’s a pretty big problem with these target levels as they come nowhere close to bettering the immediate short-term Blue downtrend.
Perhaps it shall prove to be the case where game changing news shall be required to actually gap the share price upward at the open. We will be inclined to view such a movement as extremely significant, one which should preface some proper price recovery for the longer term. Everything depends on the outcome of Deloitte's independent review of the business.
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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