The UK-based engineering firm (LON: SMIN), showed an impressive performance towards the end of its financial year 2023, resulting in an 18.1% revenue growth for the year 2023. It led to Smiths Group delivering a full-year EBIT of £573 million. The operating margins also expanded by 0.26% for this year in line with management’s expectations for moderate margin expansion.
However, following a successful year in 2023, Smiths Group expects the organic revenue growth to slow down in 2024, predicting it to be between 4% to 6% in alignment with its medium-term target range. The company also expects modest profit margin expansion.
The Previous Price Action of the SMIN Stock
Regarding the SMIN stock price in the past year, it displayed a slight upward trend after overcoming the major resistance at £1559. It reached some highs, which were typically the breakout deviations, until November 2022,
When it finally experienced a breakout, in February of this year, the stock rose even further to the level of £1805. However, since experiencing some correction in March, it has been in a consolidation phase until the time of this writing.
Technical Analysis and Prediction of the SMIN Stock Price
Looking at the present times, the SMIN stock price is trading at £1622 after the bears reclimed the resistance level of £1706. It caused the share price to fall below the EMA levels. However, today, the SMIN stock price has bounced off its support level of £1559. It is the floor since the consolidation phase.
Currently, the trend is consolidating, resulting in a live fight between the 200-day EMA and 50-day EMA. These two lines are constantly interacting and making crossovers with each other. As of now, the 200-day EMA is at £1644 while the 50-day EMA is at £1641.
The RSI Graph
The Relative Strength Index (RSI) is currently showing an upward spike as the stock has rebounded from the current support. Last Saturday, the RSI was close to its overbought level of 70 when the SMIN stock was supported by its EMAs.
However, the momentum was not sufficient as the bears reclaimed the resistance level that was just above it. Currently, the RSI is at a level of 46 after rising above its oversold level of 30.
Hence, the price projection for SMIN stock price would remain positive until it reaches its immediate resistance level. Beyond that pivot level, the uptrend will depend on the strength of the bullish momentum. If it is strong enough, a breakout can happen.
The firm had a remarkable performance at the end of its financial year in 2022. However, since March 2023, the stock has been experiencing a consolidation movement. As of now, it has bounced off its support and is likely to move towards its resistance level. If the bullish strength is strong enough, a breakout is possible.
Support: £1559, and £1487
Resistance: £1706, and £1795
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