Interactive Investor

Alien Metals: analyst’s view on recovery potentials

The small miner has surged this year. Our chartist sees where things could go next.

21st October 2020 09:34

Alistair Strang from Trends and Targets

The small miner has surged this year. Our chartist sees where things could go next.

Alien Metals (LSE:UFO) 

A few emails from the public asking us to review Alien Metals (LSE:UFO) allows us to also retell our own UFO story. 

One night, two ‘stars’ moved through the sky overhead, faster than commercial aircraft and soundless too. When the leading ‘star’ was roughly above Argyll's local nuclear base, it executed a precise 90 degree turn with no loss of speed. The other ‘star’ just continued onward.

Needless to say, not a single grainy video or dodgy photo exists of the event. 

When asked about Alien Metals with their humorous ‘UFO’ share code, we immediately anticipated they'd be based in Roswell, New Mexico and doubtless selling dodgy reclaimed models of flying saucers.

However, a glance at their corporate website certainly gives the impression the company are serious about what they do, with activities in copper and silver. 

Our greatest concern comes with share price acceleration over the last few sessions. Price movements give a distinct impression of the share being enthusiastically discussed in internet chatrooms.

Alas, sometimes too much enthusiasm can leave private investors in trouble, so we'd suggest some research. 

Additionally, the share price is trading - and has been since 2015 - below levels which allow us to calculate the ‘bottom’. Perhaps the fact the company is still trading should give hope. 

The share price needs to recover above 19p to be regarded as safe again.

Near-term, movement above 2.95p looks like it may provoke some slight recovery, as traffic towards an initial 4.9p is possible. 

If exceeded, our longer-term (or perhaps the next day) secondary works out at an enthusiastic 7.5p. 

At present, price moves since 2015 inhibit calculation above 7.5p, presenting a scenario where, if such a level is somehow exceeded, we'd be clueless as to longer-term potentials.

It's certainly an interesting one, if slightly dangerous.

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 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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