Any chance of a reprieve for this troubled share?
17th May 2023 07:11
by Alistair Strang from Trends and Targets
Trading at a record low, is there any hope for this small-cap share? Independent analyst Alistair Strang gives his view.
One of the few legal firms listed on the UK exchanges, RBG Holdings Ordinary Shares (LSE:RBGP) has not followed a great trajectory since July 2021 and, finally, we suspect we’re seeing early signals it may be in the final stages of this death spiral. To be fair, if the market thinks there’s real strength present at all, ideally this share shall bounce anytime soon.
From our numbers perspective, it appears weakness continuing below 32p risks triggering further reversals to an initial 27.5p with secondary, if broken, calculating at an “ultimate bottom” down at an unpleasant looking 19p.
- Invest with ii: Top UK Shares | How to Start Trading Stocks | Open a Trading Account
We refer to this sort of thing as an “ultimate” bottom for the pretty basic reason we cannot calculate any reliable target below such a level. Surprisingly, quite a few shares experience a bounce prior to an “ultimate” making an appearance and, visually, the share price is already in the zone.
However, it’s always worth remembering the market offers absolutely no guarantees of a bounce, along with the clichéd memory, warning of the dangers of catching a falling knife.
In this instance, above 41p looks like it could prove interesting, hopefully provoking movement to an initial 55p with secondary, if bettered, at a potentially useful 65p.
We’re being a little cautious with this optimism as the share price requires (from our perspective) to close a session above 71p, over double the price level at time of writing, to signal proper recovery kicking into action for the longer term.
For now, it’s probably worth keeping an eye on how this price behaves in the next few weeks.
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.