Can 4d Pharma continue its impressive rally?

by Alistair Strang from Trends and Targets |

Share on:

4d Pharma has experienced a pretty rough ride, and has had many reversals. Are things about to change? 

4d Pharma PLC (LSE:DDDD) 

We've received a few emails regarding 4d pharma (LSE:DDDD), share code DDDD, and it appears those getting in touch have ample reason for their interest. 

A glance at their news release history obviously unearthed the inevitable mention of Covid-19 tests, along with a rather intimidating number of fields in which the company appear to be active. 

It's an interesting one, and thankfully their share price looks poised to repay this interest.

Historically, 4d Pharma has experienced a pretty rough ride, the share price nearly reaching the £11 mark before experiencing relentless reversals since 2016. 

There are a couple of items worthy of comment, hopefully able to prove important for the longer-term.

Firstly, the Covid-19 drop in March took the share to an arithmetically perfect bottom of 24p. We cannot calculate below this level, but who cares? 

The bounce in the period since has been pretty impressive.

Secondly, the market opted to gap (manipulate) the share price above the blue downtrend in April, hopefully sending a clear signal that everything has changed and an entirely new trend is commencing. 

If we take this gap at face value, it was supposed to generate price recovery to 139p, something the share achieved earlier this month, and now the price has actually closed above 139p. 

This should prove significant as movement next above 149p looks capable of driving recovery to 181p initially. 

If exceeded, our secondary calculates at 235p.

Visually, there's an expectation the 235p level shall provoke some sort of hesitation. But closure above this level should prove really game-changing for the longer term, with the share entering a region where 651p works out as possible.

For the present, we're fairly optimistic against this one, the price needing to trade below 84p before justifying raising an eyebrow.

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, Shareprice, 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, and 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.

get more news and expert articles direct to your inbox
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio