This analyst is choosing a different 'oddball' stock each day to illustrate a near-term trade possibility.
Rockfire Resources (LSE:ROCK)
As it's December, and sometimes share prices can do silly things, we're choosing a different oddball every day to hopefully illustrate a near-term trade possibility.
When we open the Advent Calendar, Rockfire Resources (LSE:ROCK) are behind the second door and, thankfully, it indeed has some potentials showing.
Rockfire closed last week at 1.35p and, visually, now needs above just 1.6p to make further growth likely. Such a scenario calculates with an initial target at 2.12p, an ambition which makes sense from a charty perspective. As can be seen quite clearly, the share has experienced a glass ceiling just above the 2p level since August 2016.
This time, if the usual nonsense of "the third break is the keeper" proves correct, above 2.12p computes with 2.9p but, to be honest, if positive news is involved (or indeed positive sentiment in internet chatrooms) the share price could easily accelerate to a silly sounding 3.88p, several magnitudes above the current share price.
Unfortunately, there is plenty of room for the market to play games, thanks to the price requiring drill below 0.5p to utterly stuff the growth potentials.
If we were to identify a price level which should give early warning of looming trouble, it appears below 0.89 should justify some real concerns.
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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