Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Aston Martin (LON: AML) share price has risen 7.15% over the past week after an aggressive one-week selloff in the first week of October.
The luxury automaker’s share price fell despite not issuing any damaging results and coincided with the release of the new James Bond film, which showcases the legendary Aston Martin DB5 in its full glory.
Sellers took control of the company’s share price after the Bond movie premiered in the UK and proceeded to drive them lower over an intense five days.
However, Aston Martin shares rebounded on October 7, 2021, ahead of the US premiere and have rallied higher since then, recouping almost half of their initial losses from the 5-day crash.
From a technical standpoint, Aston Martin shares are trading at a crucial resistance level that has acted as support in the past and are struggling to break above the level.
A break above the resistance level could signal the start of a new rally phase, while a bounce off the level could trigger a further decline back to the recently tested support level.
Aston Martin’s prospects remain pretty promising given the recent hiring of Martin Whitmarsh, the former MacLaren team principal, to head the newly-created Aston Martin Performance Technologies, under which the manufacturer’s F1 team will operate.
The company has gone all-in on its vision to win a Formula One championship over the next 3-5 years after breaking ground on a new Formula One factory at Silverstone, which will be completed in late 2022 or early 2023.
Lawrence Stroll’s transformation strategy for the luxury carmaker seems to be paying off. However, the company still has a massive debt burden the could limit its future profitability as its debt obligations mature amid high-interest payments.
Meanwhile, investors looking to buy Aston Martin shares should wait for a break above the 1813 resistance level, or a retest of the previous support level, creating an excellent risk-reward trade setup.
*This is not investment advice. Always do your due diligence before making investment decisions.
Aston Martin share price.
Aston Martin shares are up 7.15% over the past week, despite falling 10.23% this year. Will the rally continue?
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