This FTSE 100 company ticks another optimism box
Something important has happened at this blue-chip company and independent Alistair Strang is enthusiastic.
12th February 2025 07:43
by Alistair Strang from Trends and Targets
It is certainly unusual to find ourselves being enthusiastic about a British publishing company, but Informa (LSE:INF) certainly breaks the mould, their confection of complementary activities creating a company which is collectively solid with some quite enviable activities. Their share price potentials currently echo our positive take on the organisation, a company formed in 1998 following a merger.
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The share price has struggled, since the inevitable enforced artificial hammering due to Covid in 2020. However, something potentially very interesting has just occurred due to the share price closing at 884p, a potentially significant number.
Obviously, it has achieved a "higher high" since the peaks of earlier this year but, more importantly, the downtrend since 2019 has now been exceeded. To explain, this downtrend is currently at 883.528p, and with the share closing a session at 884p, it sends off - from our perspective - a flare urging us to pay attention.
While the excess above the downtrend in only around half a penny, this is the sort of thing the market does not allow to happen accidentally, creating a situation where we can speculate a super long-term attraction as now coming from a distant 1,235p.
Another important aspect of the current share price comes from the pre-pandemic high being at 867p. With this share price breaking above such a level, it also broadcasts an important signal of things changing for the future, ticking another important optimism box.
From an immediate perspective, above 893p should next trigger movements to an initial 923p with our longer-term secondary, if bettered, at 973p and some possible hesitation.
For things to go wrong, the share price needs to slip below 800p to trigger reversals to an initial 753p with our secondary, if broken, at a bottom of 678p and almost certain hesitation.
Unfortunately, such a poisonous movement would also emplace the share price below the uptrend since 2020, making recovery difficult as this would risk stuffing the share into sticky mud while awaiting positive news to propel it out of the mess.
For now, we're fairly positive about this. It's not promising huge percentage changes, but the jump from current levels to our modest 973p still cannot be ignored.
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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