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Kier Group Shares Form Pre-Breakout Structure Ahead of April’s £150M Fundraiser

Simon Mugo trader
Updated 29 Mar 2021

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KIER Group

Shares of British construction company Kier Group plc (LON: KIE) have formed a pre-breakout structure ahead of April’s massive fundraising to raise £150 million, which is more than its current market capitalisation.

The company’s current share price seems attractive given the potential rally expected after the fundraising. Investors looking to get in before the actual fundraising may find that now is a great time to do so.*

Kier Group has been struggling financially for a long time now and is looking to reset its finances via fundraising and the proposed disposal of its Kier Living homebuilding division to focus on its construction business.

The company’s shares are trading near their all-time lows with significant upside potential if the bullish thesis holds, and they rally after the fundraising. However, nothing is guaranteed in the markets, which means that we could easily get a pullback after the fundraising, although the odds favour a rally.

Institutions own the lion’s shares of Keir Group shares, which bodes well for the firm’s retail shareholders, given that institutions are typically regarded as ‘smart money.’ Institutions do a lot of research into companies before investing in them, which increases their probability of being right on their investments.

We’ll be keeping a close eye on Kier Group shares as we head into April to see how things unfold when they announce their results and the other significant announcements.

Kier Group share price.

IG chart of Kier Group share price 29-03-2021

Kier Group shares have formed a pre-breakout structure ahead of the April fundraising and release of earnings results.

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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