What the charts tell us about Wood Group shares
The situation at this oilfield engineering business is complicated and fraught with risk. Here's what independent analyst Alistair Strang's software thinks of the share price.
19th February 2025 07:52
by Alistair Strang from Trends and Targets
In a bit of a showstopper analysis, back in 2023 we provided a report on John Wood Group (LSE:WG.)Â which proposed criteria where the share price could sink to an eventual "ridiculous 38p!". At the time, the share price was trading above 200p.
Our point, basically, was to illustrate there is no such thing as a "cheap" share, because in March 2023 we could identify 38p as an ultimate bottom, a share price target below anything we can calculate.
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Obviously, nearly two years later, times have changed and, despite Wood Group tanking, the big discussion now relates once again to Wood being cheap as it's apparently safe to regard it as at bottom and thus, unlikely to drop further. Amazingly, there's a chance they may even be right!
When we review share price movements since March 2023, it now appears "ultimate bottom" is at 20p. By reaching 21p the other day, there's a reasonable probability this shall be deemed close enough to bottom, ideally capable of generating a bounce anytime now. While movements this year currently indicate a price target below 20p is available, we're far from comfortable proposing 11p as the new ultimate bottom.
If any bounce makes an effort to appear viable, movement above 40p has the potential to becoming interesting, calculating with a rising hope of a visit to an initial 59p with our secondary, if beaten, working out at 81p.
This Big Picture secondary is quite a big deal, dumping the share price in a zone where a future 123p can be viewed as viable eventually. Certainly, it's interesting times for this oil and gas engineering monster with the next few weeks capable of showing direction.
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.Â
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