Interactive Investor

Can this AIM share double again?

16th January 2019 08:52

Alistair Strang from Trends and Targets

This small-cap bioscience energy company has doubled in value since December after signing a landmark deal with a US company. Chartist Alistair Strang looks at potential for further upside.
 

Eqtec (LSE:EQT) 

We last reviewed Eqtec (LSE:EQT) just over a month ago and it has started movement with conviction. We're a little surprised the price wasn't dipped below 0.7p prior to movement but heck, who's complaining. The future potentials remain quite interesting.

Near-term, there's still the expectation of any increase above 1.83p reaching an initial 1.96p.

This looks like it shall prove quite important for the longer-term as despite a glass ceiling awaiting at the 1.96p level thanks to the circled area on the chart, closure above 1.96p should make future travel to 2.75p fairly difficult to avoid. In fact, with positive news flow, it could easily reach 3.75p without too much trouble.

Any plot for movement beyond 3.75p is vague at best, due to a requirement the share price needs close above 3.3p, the high following its 2017 suspension. This is liable to prove difficult unless some miracle RNS is released.

For now, we're fairly happy and hope the increase is not being driven by "internet chatroom optimism" as this often ends in tears. However, it would require below 1.15p before we'd advocate panic!

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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