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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.