AIM-listed Versarien flirting with this analyst's target price

by Alistair Strang from Trends and Targets |

After bouncing back from a savage sell off, where next for this interesting but volatile AIM share?

Versarien (LSE:VRS) 

For some reason, Versarien (LSE:VRS) always seems to lend itself to a "what happened next" report, literally with each scenario we publish. Our last review on 2nd April (link below) illustrates a slightly worrying situation.

Visually the rise came extremely close to our 145p target but, importantly, it neither hit nor exceeded our ambition.

Source: Trends and Targets      Past performance is not a guide to future performance

Common sense alone suggests some patience, after all the share has only made one attempt at the target level.

Generally, a price will exhibit a fascination with such a target level for quite a few sessions, essentially flirting with the target price.

Our worry comes from the fact 145p remained unsullied at the first surge upward, despite the share price being also manipulated (gapped) upward at the open.

In addition, we had two quite distinct formula pointing to 145p as a pretty major point of interest. The fact the price (so far)  has avoiding this ambition perhaps implies weakness is present.

As a result, we're inclined to look at reversal triggers before exploring future rise potentials.

The immediate threat is of weakness continuing below 130p bringing reversal down to an initial 122p.  

In the grand scheme of things, this does not present a particularly nasty threat but our secondary, if such a level breaks, is down at 103p and risks reversal below the immediate downtrend.

This tends to be a dangerous movement from a big picture perspective. In reality, we'd hope for a genuine bounce if 122p makes a guest appearance.
Due to our perception of the share as showing weakness, we now demand it better 149p before taking further rises seriously.

A move such as this calculates with an initial potential of 165p. If exceeded, our secondary calculates as a less believable 198p - suspicious only because it exceeds the high of 2018, in doing so requiring an entirely new game plan for the longer-term.

For now, we shall not be aghast to witness the price at 122p, prior to another chapter unfolding for Versarien.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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