A crucial time for the Fevertree share price
This AIM star is rising fast, and our chartist is 'mildly enthusiastic' about further upside potential.
3rd April 2019 09:17
by Alistair Strang from Trends and Targets
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This AIM star is rising fast, and our chartist is 'mildly enthusiastic' about further upside potential.
Fevertree (LSE:FEVR)
As it's spring, Tuesday (in our bit of Scotland) started with a covering of snow, along with ice covered windscreens. Adding to the cheer was our little tractor, devoid of a big back wheel, awaiting work on its brakes. Some days, share prices inspire similar levels of enthusiasm for getting a job done....
Thankfully, Fevertree (LSE:FEVR) does not join this grouping as the price looks capable of some continued movement upward as above 3,190p now suggests a coming recovery to an initial 3,382p.
If exceeded, our longer-term secondary calculates at a comfortable 3,800p. We're mildly enthusiastic over this, if only due to the price ending its self-imposed exile below 2,950p and now closing solidly above its glass ceiling.
As always, we've spotted a fly in the ointment. (why would a fly be in ointment?)
The red uptrend on the chart delineates closing prices since 2016. The inset on the chart illustrates how the price has closed during the most recent four sessions.
Visually, the market is avoiding the share closing above the prior trend and this is always a worry. It appears growth cannot be safely assumed until the share price closes above the prior uptrend, presently at 3,075p.
The problem we have with these games is fairly simple. Until the price actually closes above this trend, it remains trading in a region where weakness below 2,470p risks reversal to an initial 1,923p. If broken, secondary computes down at 1,196p.
We suspect it intends to head upward, perhaps just awaiting some sort of news report.
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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