Kier Group at 116p:
It is already quite clear that some in the market had thought, and perhaps still do, that construction and services company could be in the same groove as say, Carillion, or currently – Thomas Cook in the travel sector.
However, some more savvy players believe that Kier Group has enough family silver to sell to stay afloat and / or could be about to unveil a descent rescue package. Whatever this kind of vague speculation may lead to, for the purposes of Chart of the Day we have a stock which has become increasingly interestingly in recent days and weeks.
For instance, the final low in July to 58p was accompanied by bullish divergence in the RSI window suggesting that a turnaround could be afoot.
But the latest breakthrough for the stock is through the 50 day moving average now at 105p – the same level as the mid June support on the way down.
What we can now look forward to is to say that while there is no end of day close back below 105p the potential upside here may be as great as the top of the rising trend channel drawn from June on the daily chart. The timeframe on such a move is regarded as the next 1-2 months.
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