A 'game changing' price target for G4S shares
The main catalyst for G4S could be Brexit, argues our chartist who studies recent share price strength.
22nd July 2020 08:47
by Alistair Strang from Trends and Targets
The main catalyst for G4S could be Brexit, argues our chartist who studies recent share price strength.
G4S PLC (LSE:GFS)Â
It's not difficult to imagine security company G4S (LSE:GFS) salivating about potential opportunities, once full border controls are required following Brexit.Â
All our conventional calculations provided a drop target of 43p against this share, but the lowest achieved turned out to be 69p, and it has certainly rebounded in the intervening period. Currently, the shares trade at 136p.
We wonder if the market suspects an inherent strength for the share price? If this is the case, we're going to play relatively sane, allocating 150p as a trigger level which should provoke further price recovery to some surprising levels.
In the event the price closes a session above 150p, we're expecting moves toward an initial 175p where a challenge of the downtrend since 2017 looks certain.
Should this initial ambition be exceeded, things start to become a little "game changing" as further travel to 250p becomes possible. This is thanks to a longer-term prospect appearing, up at 343p and effectively matching the all-time high.
We've opted to emplace a wide trigger level, as only above 150p shall we feel the share price has dusted off the effects of Covid-19 and intends to embrace the future.
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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