FirstGroup shares have real potential
With the share price at a one-year high, independent analyst Alistair Strang is getting excited about the transport firm's chart.
20th March 2025 07:38
by Alistair Strang from Trends and Targets
FirstGroup (LSE:FGP)'s chart is on the edge of showing something seriously important, for those who study such things. It shows the company share price has exceeded the downtrend since 2009, a fairly credible trend and one which is probably making folk salivate.
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There’s an important problem at present, one worth paying a lot of attention to. The share price has not created a higher high yet, creating a situation where a so-called chart breakout will often feel like it is fizzling. The ideal situation occurs, when a share price breaks a downtrend and starts to trade higher than the previous point which defined that trend.
This isn’t a secret, probably just too obvious and thus ignored, but if you want a fairly sane signal for a price movement, once FirstGroup closes above 188p or starts trading above 189p, there’s a reasonable chance the share price is about to head up.
In the case of FirstGroup, above 189p now points at potential of a lift to 198p next with our secondary, if bettered, at 221p. Overall, such a scenario shall force us to accept a long term 239p as exerting an attraction.
Our alternate scenario allows for weakness below 148p to risk triggering reversals to an initial 127p with our longer-term secondary, if broken, at 118p. For now, this doesn’t feel likely, gains appearing possible unless the share price tumbles below 170p.
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.
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