Kier share price: more downside seems likely
Kier Group has been under heavy pressure, and while there will be some expecting a bounce, the long-term trend points to further downside ahead.
Can the Kier share price go any lower?
Kier Group has a chart that tends to suggest ‘it can’t go any lower’, merely because the shares have already fallen more than 80% since September. Most people will look at the chart and begin to think that the shares cannot fall any further, when of course another 80% decline from here is just as possible as the one we have just witnessed.
Potential for short-term rebound
Now that the shares are at an all-time low, there is the potential for a short-term rebound. The 50-, 100- and 200-day simple moving averages (SMAs) will now take time to catch up with the price, as they did in December when the price slumped before rebounding 60%.
It is possible that such a rebound will occur again, which would take the price to around 195p. Such a rebound may well provide a good selling opportunity. The top end of the recent gap lower is 223p, which may provide some resistance, while 271p would also be a short-term target to the upside.
Even on the hourly chart, short-term rallies have been strong selling opportunities. The latest bounce has run out of steam at 133p. A move above here would target 200p and the previous lower high. A break of support at 106p would spark another significant move to the downside.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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