A viable tip for your ISA

AG Barr (LSE:BAG)

We're winding up our ISA candidates with AG Barr, makers of Irn Bru and probably some other products too. There's something fairly interesting going on with this lot from a trend perspective and we've drawn a circle around the evidence.

The share appears to have a viable downtrend since 2011 when the price was 14 quid. This trend appears to be confirmed this year, if we judge price moves since the start of January.

What we look for is an initial surge upward, essentially a challenge of the high before trend break. Then we ideally want the price to retreat and bounce a bit from the historical trend.

And, finally, we get to the place the share is now illustrating, a Higher High since trend break and some hope for the future.

To disengage "teacher mode", what does this all mean?

Trades now above 526p are fairly interesting, suggesting the potential of the price fizzing up to 556p is coming.

Secondary (with closure above the blue line on the chart) calculates at 605p, but, critically, this is where the trend from 2011 comes into play as the secondary might also be a longer term 774p. Or, in other words, this becomes a viable ISA candidate.

Finally, as the red line on the chart shows, the price needs to close around 450p to justify panic - an emotion similar to tasting Barr's American Cream Soda.

For now, it feels quite encouraging toward our 556p suggestion.

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.