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.

Share price chart Source: Bloomberg

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.

Kier daily chart Source: ProRealTime

Kier daily chart Source: ProRealTime

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.

Kier hourly chart Source: ProRealTime

Kier hourly chart Source: ProRealTime


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