Analysing Braveheart’s heroic share price rise

by Alistair Strang from Trends and Targets |

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The investment group’s recent performance defies obvious logic – what’s next?

Braveheart Investment Group

Braveheart (LSE:BRH), despite its pseudo-Scottish name and company registration, is based in Yorkshire - probably to escape Scottish weather and politics. We've received more than our fair share of emails asking an opinion on recent share price movements of the AIM-listed investment company.

Presently trading around 100p, the recent lunge in the direction of 139p proved especially interesting, given the share exceeded any near-term logical calculations.

We'd an argument favouring 133p as a potential ceiling, a level at which any rise could be expected to hesitate. Despite the price failing to actually close a session above our 133p target, instead topping out at 128.5p, we're curious as to its future.

Since the price achieved 139p, reversals adhered pretty firmly to our conventional ‘stutters’ logic and create a situation where we can relatively easily pencil in a trigger level, which should be capable of provoking further gains.

Above 123.5p looks like the starting gate, ideally capable of promoting a gain toward 147p next. Despite this sounding pretty significant and exciting, there's a more important detail here, with its roots back in 2007 when the listing launched.

Above 147p and it becomes easy to speculate on continued growth to 172p, virtually matching the launch price before it all went wrong and the financial crisis gave the share an absolute kicking.

In the future, closure above 172p will be defined as game-changing, with 227p becoming the next viable target level.

The share would require a retreat below 80p to suggest against painting your face blue and shouting "freedom!", thanks to the threat of reversal toward 34p.

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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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