Can popular AIM share Versarien continue to punch above its weight?
11th October 2018 09:48
by Alistair Strang from Trends and Targets
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This graphene manufacturer has seen its share price increase by tenfold in the past year. Chartist Alistair Strang uses bespoke software to see if it can reach new highs.
Versarien (LSE:VRS)
The visuals against Versarien do provide a little problem. Near-term weakness below just 140p logically introduces 137p as a point at which we would hope for a bounce.
The big problem comes if 137p breaks, thanks to 107p calculating as "bottom" on the immediate movement cycle.
At this level, the price meets the uptrend since 2017, and there are compelling arguments favouring a bounce if 107p makes an appearance.
To be honest, we do suspect this shall prove the intention.
• AIM tech stars of the future
• Most bought AIM shares in September 2018
How can it get out of trouble?
Any bounce requires the price to exceed 176p to give some hope for the future.
A move such as this anticipates 196p, essentially matching prior highs. If bettered, even slightly, the shares' track record of outperformance calculates with 218p.
For now, we fear this shall not become interesting until 107p rears its bottom.
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.
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