Kier Group and the odds of recovery from shock share slump
Shares lurched lower despite decent half-year results, but independent analyst Alistair Strang's charting software indicates it has potential to improve. Here are the numbers to watch for.
19th March 2025 07:32
by Alistair Strang from Trends and Targets
Construction company Kier Group (LSE:KIE) seems to be facing a bit of a share meltdown, something of a surprise given their initiative of indulging in a share buyback. Generally speaking, we’re always quite enthusiastic about this tactic by companies as anything which reduces the number of shares in issue usually invokes the core law of supply and demand – essentially the rarer something is, the more expensive it gets. Once a major company starts playing this game, it’s unusual for a share price to suffer.
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However, it feels like Kier may have done something to offend the market as the price is currently viewed as entering a reversal cycle.
At present, weakness below 118p has the potential of reversals to an initial 104p with our secondary, if broken, working out at 80p, hopefully bouncing before such a target level is achieved as the longer-term implications of such a target level breaking are grotty.
On the bright side, we’ve an interesting scenario where, should the share price bounce from our initial 104p drop target level, any solid bounce which toddles above 145p should continue to an initial 171p with our secondary, if bettered, at 192p. In fact, in this instance, we suspect the market shall eventually commence solid recovery movement with an upward price gap, making an eventual 209p a viable ambition.
Sorry to be short and sharp with this ‘un. The lack of words and humour doesn’t reflect our thoughts on the potentials here. Essentially, we suspect the current season of reversals shall prove fake. Here’s hoping!
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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