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ITV Share Price Rising Wedge Pattern Points to a Pullback

The ITV share price is hovering near the highest level since February 2020 as the ad business rebounded and after the company moved back to the FTSE 100. The shares are trading at 130.85p, which is 163% above the lowest level in 2020. 

ITV news: ITV stock price dipped sharply in 2020 as the coronavirus pandemic forced more companies to slash their marketing budget. The company’s production was also affected as the government implemented social distancing measures. 

After dipping to its lowest level on record, the stock recovered as companies like Moderna and Novavax accelerated their vaccine development and as advertisers started to return. Today, the shares are trading at the highest level since February last year. Many advertisers are considering boosting their marketing budget as they try to reach more users. 

Still, the company faces several challenges. For example, the ratings for Good Morning Britain have declined after the company parted ways with Piers Morgan two months ago. In a recent scoop, The Sun reported that “panicked” execs were talking with Morgan for a return. Second, the company will likely lose its license for James Bond movies after their owner was acquired by Amazon.

ITV will become the next member of the FTSE 100 by replacing Renshaw, the British engineering firm that was also the smallest member of the index. This will force ETF companies that hold the FTSE to add their allocations to the company.

ITV share price forecast

The daily chart shows that the ITV share price has been on a strong upward trend recently. The shares remain slightly above the short and longer-term moving averages. However, a closer look shows that the stock is forming a rising wedge. In technical analysis, this pattern is usually a sign of bearish reversal. 

Therefore, while the upward trend will likely continue, the rising wedge pattern could mean a potential reversal is possible. However, a move above140p will mean that there are still more buyers left in the market. 

ITV stock chart

ITV share price

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