Is Argo Blockchain a sure thing?
22nd September 2021 07:44
by Alistair Strang from Trends and Targets
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Shares have begun a recovery after their first-half retreat from record highs. Here’s what independent analyst Alistair Strang thinks might happen next.
With Argo Blockchain (LSE:ARB), rather quickly, achieving and slightly exceeding our bounce target given in our July report, the share price is now showing interesting potentials.
We should point out that in the market there is no such thing as a “sure thing”. But Argo, the only Crypto miner listed on the London exchange, is now showing some strong scenario for the future.
Source: Trends and Targets. Past performance is not a guide to future performance
There are a couple of things worthy of note. Back in July, we suspected the share price would bounce before 63p. This was a price level where virtually every logic we employ demanded it must rebound. The reality came a day after our report, the share hitting 82p and failing to drop further.
Ideally, this promotes the concept of inherent strength and should this be the case, perhaps it shall prove important the share closed at 173p on Friday 17 September, just above our 170p bounce target.
With the share price presently trading around 167p, it certainly does not require a great deal of work to create a further positive scenario for the longer term.
Next, above 173p calculates with the potential of further recovery to an initial 199p. The visuals imply some hesitation should be anticipated around such a level, if only due to the folk trapped since April of this year opting to bail at breakeven. Our secondary, should 199p be exceeded, works out at 227p.
Source: Trends and Targets. Past performance is not a guide to future performance
An interesting, almost refreshing, aspect of Argo’s share price movements comes from a distinct separation between the crazy swings ‘enjoyed’ by crypto currency, when viewed against price movements of a crypto miner. At times, we wish gold miners would experience such a sensible distance between reality and rumour.
On the chart below, we feature a third level target of 250p, if it all starts moving fast. While some hesitation can be anticipated at such a level, again due to prior behaviour, in the event the share price actually closes a session above 250p, we shall regard it as entering a brave new world with some extremely interesting long term potentials.
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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