M&G (LON: MNG) share price has gained 3.5% after retesting the July lows of 183p. The shares for the British investment bank were trading at 190.55 at press time, up 0.34%.
The FTSE100 index, which is used by analysts to judge market sentiment in the UK stock market, has increased by 200 points since last week. This bounce in the index was aided by the strong half-yearly earnings report published by Prudential. Side by side, the pound also appeared to lose strength compared to the dollar.
On Tuesday, Barclays reduced their price target for M&G share price from £1.94 to £1.9 while maintaining their “underweight” rating. Two days later, JP Morgan followed by decreasing their price target to £1.8 from £2 and retained the same “underweight” rating.
Earlier in July, M&G reaffirmed its aim to meet its financial targets set before the implementation of IFRS 17. The Investment and Savings bank assured that the change in the Accounting Standards did not harm their strategies and capital management framework at all. This assurance is positive news for the stock.
The latest price analysis for LON: MNG reveals the price trading inside a wedge since June 2021. The price broke above the top wedge in February 2023 before the bears pushed it back inside. The shares appear to be heading for a retest of the 200 MA.
The M&G share price forecast will be very bullish if the price breaks above 196.5p. In this case, a retest of the wedge top can be expected. However, a 3.75% correction towards the July lows will be on the cards if the price gets rejected from 200 MA. The correction might deepen if the bulls fail to find support at 183p.
In the meantime, I’ll keep sharing updated M&G price targets and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 30, 2023, 14:40 BST 14:40