Liontrust (LON: LIO) share price is up more than 15% from its August lows. The share price of the asset manager fell to its fresh 4-year lows in August 2023. However, it has shown a significant rebound from these lows and is gaining bullish momentum.
On Friday, Liontrust shares are trading 2.10% up from yesterday. The positive price action follows a 10.36% gain on Thursday. Technical analysis shows that the price is heading to retest a key resistance level, which may result in another pullback next week.
A major reason behind the recent surge in the Liontrust stock is the falter of its proposed takeover offer for GAM Investments. The British asset manager failed to gain the required support from the shareholders to take over its Swiss counterpart.
Liontrust share price went up 10.36% on Thursday as the above-mentioned news came out. Consequently, GAM Investments is now looking for other ways to raise funds. According to the latest reports, the investment firm is now in talks with Niel’s NewGame.
In other news, Liontrust insiders have recently sold £1.2m worth of shares in the past 12 months. This explains the bearish trend of the stock in the past few months. I am still skeptical of the ongoing bounce as the shares are still trading below the key level of 691p.
Liontrust share price forecast would remain bearish as long as it trades below this level. Unlike other analysts, I look at the weekly charts of the shares to understand the bigger picture. On a weekly timeframe, LON: LIO needs to reclaim the 691p level to avoid a bearish outlook.
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This post was last modified on %s = human-readable time difference 11:01