Can this Apple supplier bounce again?

Laird (LSE:LRD)

In the great scheme of things, few things define utter boredom more than Laird's (LRD) share price during the last six months. But oddly we’d a flurry of requests for an update, so perhaps something interesting is possible.

Let’s just say we’re a bit sceptical!

Last time we reviewed this, we’d given the potential of a big picture drop to 127p, something the price achieved at the tail end of last year. Given dance steps during November, if now appears weakness below 141p should probably give another drip down to 127p yet again. There’s a pretty major issue at 127p, due to the red line on the chart.

This particular trend risks being particularly nasty as weakness below is very liable to provoke sharp reversal to 107p.

There’s something rather interesting at the 107p level as it’s one of these big picture things, a point where there’s almost a law demanding a proper bounce.

When viewing the trend since the share price was mashed downward last year, there’s a pretty strong suggestion it requires only better 161p currently (blue) to provoke growth to 179p. Our secondary, if such a level bettered, comes along at 195p. Visually, this virtually matches the price high in March and thus can be expected to give some sort of stumble. Only with closure beyond 195p dare we express optimism for the future as some extraordinary recovery becomes possible.

For now, we suspect it worth watching in case 107p makes an appearance.

Finally, thanks for the emails regarding chocolate Xmas tree ornaments. Glad to know other folk love watching their grandchildren’s face light up as they unwrap the coin and discover a cardboard circle!

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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