close icon

London Stock Exchange Stock Needs a Breather

Stock exchanges are the places where the shares of publicly traded companies change hands. But sometimes we forget that the exchanges themselves are operated by a company, as well. Usually, those companies are also public with their stocks trading on the exchange, too. That is exactly the case with the London Stock Exchange Group plc.

The company’s stock, of course, trades on the London Stock Exchange under the symbol LSE.L. At last check, the price was 8877 pence or 88.77 GBP per share. The London Stock Exchange Group went public 19 years ago and saw tremendous appreciation over that period. Let’s take a look at it below.

London Stock Exchange stock price history

The weekly chart takes us back to August 2001, when the LSE’s uptrend began. The stock rose from 252 to 2002 by early-2008, but the Financial Crisis erased almost all of those gains by March 2009. From then on, however, it has been a real bonanza, especially for long-term investors.

London Stock Exchange stock climbed to 8628 by February 2020 before the COVID-19 market crash brought it down to 5300 in March. However, it turned out the coronavirus panic was short-lived. As of this writing, the stock is trading at new all-time highs.

London Stock Exchange Out of the COVID-19 Crisis and Back in Bubble Zone

Now, putting all those figures into Elliott Wave context reveals that the entire uptrend since 2001 is a five-wave impulse. The pattern is labeled I-II-III-IV-V, where wave III is extended and wave V is still unfolding.

According to the theory, a three-wave correction follows every impulse before the larger trend can resume. Trying to predict where the top will form is not only pointless, but dangerous. Besides, it looks like the bulls are willing to go for the 10 000 pence a share mark before giving up.

The important thing is that once wave V is over, a notable corrective pullback should be expected to drag LSE.L back to the support of wave IV near 5300. And if the bearish Elliott Wave message is not enough, the stock trades at a P/E ratio close to 80, suggesting extreme overvaluation. In our opinion, there is enough evidence to conclude that the London Stock Exchange Group plc is a very risky investment right now.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Tesla: Elliott Wave Aside, This is Totally Irrational

Tesla is up over 13% in pre-market trading today after news of its scheduled inclusion in the S&P 500 index on December 21st. The stock’s phenomenal rise since the COVID-19 crash led the company to a market cap of over $400 billion. This makes it much bigger than established rivals such as Volkswagen, Toyota and…

Read More »

Biogen, Elliott Wave and the Quest for Alzheimer Cure

Biogen is one of the top-notch firms in the biotech space. With sales of over $12.7B in 2019, the stock has been very generous to investors in the past. In fact, it is one of only five companies mentioned in Christopher W. Mayer’s book “100-Baggers” that have returned 100 to 1 in under six years.…

Read More »

Ryanair Stock, Unlike Its Planes, Can Fly Again Soon

Few industries have been hit harder by the COVID-19 pandemic restrictions than the airlines. Flight numbers and passenger traffic have been significantly reduced in Europe and the U.S. since March. Even low-cost carriers like Ryanair were not spared. Ryanair’s passenger traffic plunged by 99.5% in May and is still down 64% in September. Apparently nobody…

Read More »

General Mills Bearish Elliott Wave Cycle Spells Trouble

The last time we wrote about General Mills stock was over a year and a half ago. Following a bullish reversal Elliott Wave analysis helped us correctly predict in late-December 2018, the stock was trading above $51 a share in late-March 2019. It was a 33% recovery, whose structure, however, didn’t look quite as anticipated.…

Read More »

Fortinet Is Strong, but The Stock Can Slide 40% Anyway

Fortinet Inc. provides cybersecurity solutions to large and small businesses and enterprises. The company went public on the NASDAQ exchange in late-2009. Great timing, as it allowed it to enjoy the phenomenal post-crisis bull market. In fact, by July 2020, FTNT stock was up 794% since its IPO, easily beating the S&P 500’s return over…

Read More »

NIU Stock, Down 18% This Week, Can Fall Further

E-scooters have been all the rage in the past couple of years. Much friendlier to the environment and often more convenient as an urban transportation option than cars, electric scooters were quick to gain popularity. Niu Technologies, a Chinese manufacturer, has been bearing the fruits of this trend. The company’s ADS trade on the NASDAQ…

Read More »

Barry Callebaut Can Drop 25% as Fourth Wave Unfolds

Barry Callebaut AG is one of the largest cocoa processors and chocolate manufacturers in the world. Formed by the 1996 merger of Callebaut and Cacao Barry, the company produces over two million tonnes of cocoa and chocolate per year. Barry Callebaut went public on the SIX Swiss Exchange in 1998 and has been quite rewarding to investors ever since.…

Read More »

More analyses