Reasons to be enthusiastic about Kingfisher's future
A results day rally has put this DIY retailer in the spotlight and its shares at a multi-year high. Independent analyst Alistair Strang reveals what his charts say might happen next.
18th September 2024 07:18
by Alistair Strang from Trends and Targets
Kingfisher (LSE:KGF)'s share place surged 11.23% on Tuesday. It was interesting to note their recent financial results were encouraging, despite the company noting demand for “big ticket” items has remained weak.
However, despite reporting a drop in group sales, the company's profits are nudging up and, therefore, the market is a happy bunny.
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The immediate situation is fairly useful with movement above just 333.1p showing the potential of triggering further price lurches in the direction of 345p. As the chart below implies, there’s certainly reason to anticipate some hesitation at such a level, but also another reason to hope something important happens.
We suspect closure above 346p shall prove critical to the share price's future, taking it into a zone where we calculate 423p as a logical third level target, leaving it in a zone where a strong potential for the long term can be speculated on.
If things intend to go wrong, the price needs to be discounted below 225p to cause serious panic, capable of triggering reversals to an initial 193p with secondary, if broken, at 123p and a probable bounce.
For now, we’re fairly enthusiastic about Kingfishers 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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