How long can Aston Martin shares head in right direction?

The stock market flotation of one of Britain's most iconic brands has been a disaster, losing 97% of its value. Independent analyst Alistair Strang studies the charts for any sign of optimism. 

31st October 2024 07:50

by Alistair Strang from Trends and Targets

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Aston Martin

Miracles happen, though rarely for Aston Martin Lagonda Global Holdings Ordinary Shares (LSE:AML).

We’re starting to wonder if AML should abandon their car ambitions as The Times started Wednesday by reporting Aston were losing £1 million per day as the company missed all targets for the most recent quarter earnings.

Another publication reported gleefully Aston Martin has slashed their pre-tax loss by 90% and their revenue had increased by 8%, carrying an implicit degree of optimism for the car company, the share price somehow ending up 5% on Wednesday.

The situation now is fairly dangerous due to share price closure below 100p entering a zone where perhaps 93p may produce a bounce. But, from  our software and a Big Picture viewpoint, Aston Martin shall find itself driving at speed to a share price value of precisely zero. Which is rarely a good sign!

If some happiness is coming, it appears above 115p could easily provoke acceleration to an initial 124p with our secondary, if bettered, at a longer term 141p.

Closure above 141p should prove to be game changing, signalling a core change in the way Aston is being regarded.

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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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  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.

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