Smiths Group likely to hit year's highs, says Galvan

19th Feb 2014 12:46

Galvan Research and Trading has rated technology firm Smiths Group as a 'buy', saying that the share price is likely to regain and surpass its 52-week high before the company's first-half results on March 19th.Ed Woolfitt, Head of Trading, said that Smiths Group's share price has given technical traders an "easy-to-read" chart over the past year, "deliver[ing] a series of five higher highs and five higher lows, with the lows in each case bouncing from the rising 200-day moving average".As long as there is no end-of-day close below the 200-day moving average at 1,384p, Woolfitt believes that the stock could retest the year's high of 1,535p.He said: "It is rare that such an opportunity is presented to traders in the run up to a major results announcement, but having reassured last November that was trading in line with expectations, the near perfect charting picture provided by global technology company Smiths Group almost guarantees upside from the 200-day line in the run up the March interim results."The stock was 0.9% higher at 1,413p by 12:56 on Thursday.BC