Will this small-cap remain above important trend line?
After hitting a multi-year high in 2024, this famous company has fallen back to a key trend line. Independent analyst Alistair Strang studies the odds of a strong bounce from here.
18th March 2025 07:58
by Alistair Strang from Trends and Targets
Renold (LSE:RNO) and their chains became an important facet of life back in a grease smeared childhood, and nowadays, in addition to being the #1 supplier of chain to classic British motorcycles, also have their fingers in quite a few other pies.
Whether it is escalators, farming machinery, or even fairground rides, Renold continues to supply solutions to connect the power bit of machines to the final drive, where something is being turned. Now, they are famed for rather more than their chain, supplying gears, bearings, chains, and most other items associate with what's called the Final Drive.
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The company share price is currently a little bit interesting, recently colliding with the Red uptrend since the pandemic low of 2020.
The market has certainly produced some sort of bounce, but it currently needs above 43p to hopefully trigger recovery to an initial 47p with our longer-term secondary, if bettered, at an important trend breaking 58.5p.
Share price closure above such a level shall be regarded as "game changing" for the long term. We've shown some teaser prices on the chart below.
Alternately, our miserable scenario cannot be ignored. At present, the share price need only retreat below 35p to potentially trigger reversals to an initial  21p, with our secondary calculating at a vile looking 7p.
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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