Weir Group Plc to Continue Its Upward Trend?

Weir Group Plc was founded in 1871 which produces and sells highly engineered original equipment and operates through two segments which includes Minerals and ESCO. Their Minerals segment offers slurry handling equipment and associated aftermarket support services for abrasive high-wear applications used within the mining and oil sands markets. The ESCO segment provides ground engaging tools for surface mining and infrastructure. Their main aim is to be the most admired engineering business within their markets.

Over a five-year period, Weir Group Plc have seen relatively strong performance as their share price has increased approximately 40% throughout this period. They are known as one of the industry leaders and have a market cap of approximately £5bn. They also have a P/E ratio of approximately 35.72 which could potentially indicate that their share price could be considered as overvalued at current levels. Although, over a one-year period they have seen some very strong growth as their shares have increased approximately 75% throughout an extremely difficult period led by the ongoing pandemic. The chart below demonstrates their share price performance since 2018.

It appears that Weir Group Plc have reached an interesting level which may indicate a potential continuation of their upward momentum. Recently they have seen some strong growth but have since been in a bit of a consolidation period. The blue lines indicate that they are trading within a symmetrical triangle which is a continuation pattern. This therefore potentially indicates that the share price may see some more positive momentum in the coming weeks. It will be interesting to see where the candle finishes at the end of this week as it is also seeing some resistance from the Fibonacci levels as demonstrated by the black lines on the chart. If the price breaks this level and the upward trend line within the symmetrical triangle, then a potential continuation in upward momentum may be expected.