Pendragon for 13/06/2019

#NK225 #NasdaqIt’s worrying, how often we find ourselves examining shares with a view to decide “is it cheap yet?” The latest candidate, Pendragon, thankfully does not require the Wheeler Dealers treatment to make our mind up. In fact, a glance at the chart since 2009 should give sufficient warning.

It’s a bit surprising seeing one of the stars of the motor trade appear on the naughty step. Given low interest rates, along with massive improvements in fuel economy, we’d assumed cars were virtually driving themselves out of the showrooms. Similarly, the plethora of new vehicles cluttering up traffic jams appears to confirm someone, somewhere, is selling a lot of cars and, presumably, making a profit from it. However, there’s nothing quite like a Profit Warning to utterly foul a share price.

As the chart illustrates pretty clearly, the uptrend since 2009 has now been broken with the price forced below. It’s pretty unlikely it has seen bottom on the first surge, instead appearing  to suggest weakness now below 16.5p will prove capable of reversal to 13.5p and hopefully, a rebound. There are some quite extreme implications should the 13.5p level break as there’s the risk of freefall down to a longer term 4.70p. Visually, along with experience, tends suggest some sort of rebound by the 13.5p level but whether it lasts will greatly depend on if 13.5p breaks.

To give the impression this has all been a dreadful mistake, the share price needs reclaim RED which indicates 22.5p presently. If we accept the market has just indicated a new trend is commencing, we’re not holding our breath for such a signal anytime soon.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:56:25PM

BRENT

59.5

               

Success

9:58:10PM

GOLD

1333.58

               

Success

10:01:25PM

FTSE

7363.98

               

Success

10:03:26PM

FRANCE

5367

               

10:05:35PM

GERMANY

12114.41

               

‘cess

10:07:32PM

US500

2880.52

               

10:09:35PM

DOW

26014.8

               

10:11:33PM

NASDAQ

7471.35

7456

7431.5

7377

7502

7521

7535.5

7562

7471

10:13:36PM

JAPAN

21050

21021

20934

20801

21197

21200

21276.75

21314

21030

Success

 

12/06/2019 FTSE Closed at 7367 points. Change of -0.42%. Total value traded through LSE was: £ 6,274,158,811 a change of 15.18%

Leave a Reply

Your e-mail address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.