Can Plus500 shares continue their repair job?
The shares are clawing their way back from last year's fall. Our chartist seeks signs of further upside.
5th February 2020 09:02
by Alistair Strang from Trends and Targets
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The online broker is clawing its way back from last year's fall. Our chartist seeks signs of further upside.
Plus500 Ltd (LSE:PLUS)
The important thing about Plus500's (LSE:PLUS) price is the fascinating downtrend since 2018. In mid January of this year, the share exceeded this trend, slavishly pole dancing down the line as if waiting for an excuse to break free.
Perhaps the share price is awaiting company news, perhaps simply the right market conditions but, invariably, when we see this sort of thing, any movement (unfortunately both up or down) tends be fast and sharp.
Presently trading around 910p, the price needs to exceed 939p to trigger movement to 999p apparently.
If exceeded, secondary calculates at 1,150p. For the longer term, closure above 1,150p is liable to prove extremely significant, taking the price into a region where 1,518p and beyond become available, covering the naughty-step gap inflicted a year ago for whatever reason.
Of course, we always prefer to inflict a little misery (or a reality check) and Plus 500 have an absolute cracker. The share price needs to reverse below 770p to enter a region where reversal to 361p becomes possible. If broken, bottom calculates at 7.4p!
For now, we're pretending optimism, thanks to recent price movements.
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.
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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