Chemring trend break is worth watching
With a US election result fast approaching, independent analyst Alistair Strang assesses the potential of this UK defence company following an important price move.
5th November 2024 07:12
Chemring Group (LSE:CHG) presents a website with an impressive range of flares and countermeasures. And news it has won an impressive contract surely shall do the share price no harm, though a victory in the US for Mr Trump may not be greeted with euphoria, given his intention is to calm down wars affecting his country.
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Something seems to be happening with Chemring's share price, as breaking through a downtrend since 2011 certainly provides some positive perspective for the future. It is currently the case where above just 377p should trigger movement to an initial 417p with our secondary, if beaten, calculating at a longer-term 551p. Or to be plain, it is worth watching.
If things intend to go wrong, closure below 350p looks stuffed full of problems as this risks triggering reversal to an initial 306p with our secondary, if broken, at 269p.
Visually, such a trauma would return the price into the mess which it found itself in during late 2022, giving an excellent reason for a bounce into the 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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