The remaining top share picks on a chart

To complete our take on the remaining top ten FTSE 350 shares here’s the final few from last week. As I’ve explained, the main purpose for these shares is their fundamentals. As we are looking at particularly long-term holds the chart (even a 10 year weekly bar chart, as shown below) becomes irrelevant. However, it’s always nice not to have to spend the first few years of ownership out of the money. Therefore, please do your own due diligence but these charts may help.

Zoopla has a clear 3-wedge up which could signal a pull back. However, if the pull back is weak there is a reasonable probability of a measured move up of the whole wedge, to the 600 area. 

There is a 50% probability of a pull back with Wizz to the 1,300 area, as marked below. However, price is currently centrally located in a possible big trading range (TR) so a push up to the top of the marked TR is a consideration. The big TR will only reveal itself after another touch at the top and bottom.

Shire is a lot at 5,000. However, do not misinterpret this as expensive or over valued.  Price and value, in this sense, as we know, are not correlated. Pharmaceutical companies are liable to large share price movements. Shire being one of the more stable for reasons that our further due diligence will reveal. Again, we are looking for a break out here from its previous high of about 5,750 or a pull back to firmly cement the bottom of the trading range.

Whatever your thoughts might be about a company such as Playtech – online casinos and the like – it has been a consistent member of our top ten. Since 2012 share price has more than tripled and from our fundamental calculations is still only 50% of its future value. The last annual report for Playtech was at the end of 2015, so I’m waiting to see what the next results provide.

The FTSE 100 is largely influenced by the big commodity companies, even though it is weighted by market capitalisation. Therefore I’d be reluctant to use the FTSE 100 as a barometer for our top ten shares.


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