The ITV share price rebound has accelerated this week after the company attracted millions of viewers from the Meghan Markle and Prince Harry interview. ITV shares are trading at 126p, which is 154% above last year’s low of 50p.
What happened: iTV share price declined sharply last year as the pandemic spread. This led the company’s studio division to suspend most of its shootings. Also, it suffered as advertisers suspended some of their campaigns. The share’s underperformance saw the company booted from the FTSE 100 index.
In the past few months, however, the company has rebounded as advertisers have started boosting their spending. In fact, in its earnings release yesterday, the company said that advertising revenue increased by 3% in the fourth quarter. However, the management expects this demand to cool-down this quarter because of the third lockdown. The CEO said:
“Trends are improving again, with March expected to be up 8% and April expected to be up between 60% and 75%.”
The company’s viewership has also continued to rise. For example, the latest interview of Meghan Markle and Prince Harry has more than 11 million watchers. However, the company has gotten into controversy after Pierce Morgan resigned after his comments about the interview.
The daily chart below shows that the ITV share price has been on an upward trend. It was forming an ascending triangle pattern. It moved past this pattern a few days ago. The price has also moved above the 61.8% Fibonacci retracement level while the upward trend is being supported by the short and long-term moving averages.
Therefore, in my view, the upward trend will continue rising as bulls target the 78.6% retracement at 140p. This price is 10% above the current level.
