Can Yellow Cake shares continue their incredible run?
Up over 50% in the past month, this small-cap is now worth over £1 billion. Independent analyst Alistair Strang reveals his latest share price forecast.
26th September 2023 07:41
by Alistair Strang from Trends and Targets
When we previously reviewed uranium “speculator” Yellow Cake Ordinary Shares (LSE:YCA) back in March, we’d given three potential target levels. A few of our clients believe, quite firmly, that uranium is a product whose turn is coming and, with the easing of society fears for the nuclear industry, we shouldn’t be surprised that this share price has achieved every one of our target levels.
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Currently, Yellow Cake face a bit of a problem from our perspective.
The immediate situation suggests movement above 568p should make an attempt at 572p next with our secondary, if exceeded, working out at a longer term 655p. In the normal scheme of things, we’d anticipate some hesitation at the 572p level as the share price is getting close to the top end of our calculations. We shall be interested if the market once again chooses to gap the price upward, as this should make it clear there are expectations for Yellow Cake in the future above 655p.
Visually, the recent nudge above 500p looks like it was inflicted just to avoid the five quid level becoming entrenched as a point of resistance. This is certainly an interesting share, not least due to a suspicion our upper target of 655p shall become a footnote, proving just because we cannot calculate higher, it doesn’t mean the price cannot continue north.
If things intend to go wrong, below 450p risks becoming troublesome, allowing for reversal down to an initial 415p with our longer term secondary, if broken, working out at 363p.
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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