The Scottish Mortgage share price continued on its descent this Tuesday, stumbling to a 6.48% loss as the trading session closes.
Since posting a high of 1568.6 on 5 November 2021, the stock has endured a relentless assault from the bears, resulting in the stock price falling by more than half since then. Moreover, the stock has only registered about 36 trading days in green territory, which indicates the extent of the bearish onslaught.
The recent nosedive of the Scottish Mortgage share price resulted from the recently posted full-year loss. The results posted for the year ended 31 March 2022 indicated a net loss after tax of 2.54 billion pounds, equivalent to 1.78 pounds per share. This figure was far worse than the full-year 2021 earnings, which saw the company post profits of 9.21 billion pounds or 6.33 pounds per share.
The company has blamed the lingering effects of the COVID-19 pandemic and geopolitical tensions on the dismal performance but remains upbeat on turning the tide in the current fiscal year.
As the stock plunges further into lows last seen at the height of the pandemic in 2020, what is the Scottish Mortgage share price outlook?
Scottish Mortgage Share Price Forecast
The intraday violation of 713.2 (12 June 2020 low) must be confirmed with a 3% penetration close price filter. If this filter is met, the 657.8 support (19 February 2020 high and 6 May 2020 low) comes into play as an additional target to the south. Below this level, 581.4 (8 April 2020 low) forms yet another support level. Other harvest points for the bears are seen at 528.8 (28 February 2020 low and 27 March 2020 low) and 460.2, where the 23 March 2020 low is found.
Conversely, the bulls would need to push the price activity above the 818.4 resistance (8 March 2022 low) and the 868.4 barrier (25 April and 5 May 2022 highs) to initiate a potential recovery. This recovery will pick up steam if the price activity breaches the 931.8 resistance (11 March high), a move that opens the door for a possible push towards the 1000.0 psychological price mark (3 March high) and the 18 February/6 April highs at 1051.6.
Scottish Mortgage Investment Trust PLC: Daily Chart
