Morgan Sindall builds success, but is there danger ahead?
What a year it's been for this FTSE 250 company, with its shares up more than 60% over the past 12 months. Independent analyst Alistair Strang studies the plans for this popular construction firm.
8th October 2024 07:19
by Alistair Strang from Trends and Targets
It’s funny how, on a day when we finally selected a new garden shed and ordered it, a couple of emails arrived asking our thoughts on a UK builder.
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Morgan Sindall Group (LSE:MGNS)'s share price gives considerable hope that further gains can be anticipated, but there’s a danger the share price is approaching a logical ceiling.
Should the stock market commence “gapping” this share price up at the start of business anytime soon, our target levels are liable to be exceeded but, for now, we can only go with movements during this year.
Currently, above 3,155p should enter a cycle to an initial 3,358p with our secondary, if exceeded, working out at a future 3,750p and very possible hesitation. In the absence of evidence showing the price being manipulated upward at the open of trade, we are fairly confident it is approaching an imaginary ceiling.
Of course, we’ve an alternate scenario, one which asks for the share price to dig below 2,950p to cause trouble, risking triggering reversals to an initial 2,670p, with our longer-term secondary and bounce point working out at an eventual 2,240p.
We like this one but potentially not for long.
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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