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A great stock testing investor’s patience: SAGA share price analysis

August 16, 2023
Market
A great stock testing investor’s patience: SAGA share price analysis
  • SAGA was trading in a range between £109 to £143 since March this year.
  • The price consolidation makes investors impatient, expecting a long-due breakout.

A company focused on serving the needs of people above 50, SAGA provides tours and travel packages. It also operates luxury cruise ships as a part of its holiday services. On the financial side, SAGA provides a wide range of financial tools like insurance, credit cards, equity dealings, and a wide range of other products too. The company has remained unprofitable for the past 5 years but yet continues all its operations fully.

A great stock testing investor’s patience: SAGA share price analysis

Technical analysis for the stock-

The stock showed a huge buying momentum in January this year when it created a high of £199.2 and has seen a fall from those levels. £199.2 levels have now become a very strong resistance and the stock has fallen drastically after getting rejected from there.

A continuous range-bound pattern has been followed for 4 months. Both upside and downside moves are currently possible as there is no confirmation whatsoever. 

It’s a good scenario for a trader as after such a long consolidation, a big move is usually expected in any possible direction. 

A great stock testing investor’s patience: SAGA share price analysis

In the 1-hour time frame, there is just a simple rangebound movement where the market has faced rejection from its resistance. 

A bullish trendline is seen in the making and if we get a breakdown for it, the price can slump down to the next soft support at around £116 levels. 

On the upside, £143 yet acts as the next target. Buyers are expected to wait for a confirmation before entering the stock.

Conclusion: 

Indicators including EMA predict a strong buy rating. Analysts have predicted the year-end price target to be 195 pounds which is almost a 50% upside. A positive for the stock is that even though the movement has been sideways, there are yet good volumes in the stock.

Many prominent factors predict a possible upside for the stock. 143 remains the first target followed by 155 pounds as the next target. 

Even though a downside is less likely to occur, we should keep 116 and 108 levels as the targets.

Major technical levels-

Support levels- 108 followed by 93.4 pounds

Resistance levels- 143 followed by 160 pounds.

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