Should you take a punt on this retailer?

Laura Ashley (LSE:ALY)

Earlier this year, we proposed a basket of ISA shares, with Laura Ashley mentioned, along with the criteria it needed before being sane.

Our group of shares are collectively showing at 16.4% up, but we're painfully aware some folk will have bought ALY as a 'punt', and the share continues to avoid trigger levels with similar atelicity to Theresa May and interviewers questions.

The share appears now on the final glide slope to 11.5p, maybe even 9p. And, remember, we cannot calculate below such a level. When viewing the big picture, it's probably fair to treat the recent lows of 13p as hopefully sufficiently close to bottom.

So, what does it need to prove any upward surge is genuine?

Our price calculation tool advises the share needs above 18.379p currently to be taken seriously.

A movement such as this is liable to generate an initial 20.5p with secondary, if bettered, at 26p. Or perhaps even 33p if solid positive news drives any rise, challenging the high of 2015.

But, for now, it's stuffed and as long as it remains below that blue line and risks being in the discontinued section of the clothing rack.

We should point out, just 'cos we run out of fingers below 9p, it doesn't mean the share cannot go lower. It's a "punt" and visually quite risky.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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.