AIM's Rockhopper due a 'serious' bounce here
1st November 2018 09:28
by Alistair Strang from Trends and Targets
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This AIM listed explorer has made progress with its oil field this year and has opportunities in the pipeline. Chartist Alistair Strang studies the key technical levels.
Rockhopper (LSE:RKH) and 0.6p share targets!
If one were to search for an example of things you do not want a share price to do, Rockhopper manages to fit the bill quite nicely. It even managed a "gap up gap down" (gaga) at the start of October, generally signalling a rough patch ahead.
The immediate situation appears pretty foul with movement below 29p apparently being capable of triggering reversals to an initial 22p.
This is where it gets seriously dangerous as the price breaks the uptrend since 2017 which currently resides around the 27p level (red).
Below 22p and further relaxation toward 11p looks painfully possible but worse, below 22p and the share exhibits a big picture threat of an eventual bottom at just 0.6p.
At time of writing, the share is trading around the 30p mark with the 29p level appearing fairly inviolate. We can hope. However, the price now requires to grow above blue (37p at present) to suggest some recovery towards 41p is expected, along with a fairly obvious stutter given prior highs at this level.
Our longer term secondary, if 41p bettered, is at 50p though with positive news, it could accelerate to 61p pretty fast.
For now, we suspect the eventual temptation shall be for an attempt at 22p, then hopefully a serious bounce.
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.
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