Aston Martin (LON: AML) share price is in the midst of a recovery. The shares for the British sportscar manufacturer have had a fantastic year, with a 61.6% surge since the start of 2023. On Tuesday, the stock is currently trading at 339p without showing any significant gain or loss.
The recent recovery in AML shares can be attributed to the bullish sentiment in UK equities. FTSE100, which is a benchmark for the top 100 British companies listed on the London Stock Exchange, rose by 13 points on Tuesday. The recovery in the UK shares before the release of key economic data is very encouraging.
Aston Martin Issues New Ordinary Shares
In August, Aston Martin raised £216.1 million from issuing around 58,245,957 new ordinary shares. The luxury sports car manufacturer sold the shares at £3.17 per share, which were issued at a 6.2% discount. Aston Martin hopes this move will help solve its cashflow problems in 2024.
In other news, Aston Martin has received a few upgrades in its rating. The American investment bank, Jefferies, raised the price target from £3 to £4.1 while also upgrading the rating to “buy”. The British bank, Barclays, also followed by changing the price target to £4 from £3.75 and maintained its “overweight rating”. Aston Martin share price currently sits 14.75% below its yearly high.
Aston Martin Share Price Forms Head And Shoulders Pattern
The chart for LON: AML shows the price forming a head and shoulders pattern, which is a very bearish pattern. However, this pattern only plays out in case of a break below the neckline, which currently lies at 321p level. The chart also shows the price respecting an upward trendline since October 2022.
The Aston Martin (AML) share price forecast will turn bearish if the price breaks below the 321p neckline. In this case, I expect a retest of the 200 MA, which is below 250p. The retest of the 200 MA also perfectly aligns with the 233p-255p price gap that was left back in May 2023.
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