#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.
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%
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