Technical Analysis
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This chart for Compass Group shows a support level of 245 on the first bottom.
The chart then reaches a high of 293 before falling to an ascending second bottom. The fact that this second bottom is at a higher level than the first bottom indicates a new, bullish trend with a series of higher highs and lower lows.
We can construct a new target price for the stock by subtracting 245 from 293. This difference of 48 can be added to the previous high of 293 to give a target price of 341.
In fact, as the chart reveals, we ultimately reach a high of 347.
The information contained in this case study is believed to be correct but cannot be guaranteed. Investors should be aware that the value of investments and the income derived from them can fall as well as rise, and past performance is not necessarily a guide to future performance. The information contained in this case study does not constitute a personal recommendation to deal in any particular shares. You should consult a personal advisor to discuss the suitability to your personal circumstances and investment objectives.