Faron Pharma: a 'cracking prediction'
Things have gone a little pear-shaped for Faron, so our chartist looks for possible catalysts.
15th July 2020 08:46
by Alistair Strang from Trends and Targets
Things have gone a little pear-shaped for Faron, so our chartist looks for possible catalysts.
Faron Pharamceuticals (LSE:FARN)
This was the scene of a cracking prediction from February. With the share price then at 320p, we'd given 559p as a (frankly surprising) ambition and it peaked at 560p on 1 April.
This is also why we like emails from folk as we don't have time to check every single analysis!
Since Faron (LSE:FARN) produced this result, unfortunately things have gone a little pear-shaped and it's now flirting with danger.
Presently trading around the 300p level, Faron's share price presents an issue should it now stumble below 285p as this is liable to trigger reversal to an initial 260p.
If broken, our secondary calculates down at 159p and hopefully a rebound. Visually, there's a major issue at the 159p as the price becomes solidly embedded in the land of "lower lows".
Should the company wish to truly damage their prospects, issuing negative news could easily propel the price to 104p and "that's it!"
We cannot calculate anything below 104p, so must regard this as an ultimate bottom level. Even the chart tends agree with this computation.
As always, there's a 'however' worth paying some attention.
Should the share price discover an excuse to trade upward beyond just 315p, we can work out an initial ambition up at a pleasant sounding 345p with secondary, if exceeded, calculating at a very significant 385p.
Such a price level would present an excellent time for Faron to issue positive news, thanks to a ruling attraction at 508p.
As the chart shows, closure above 508p at any point in the future (Covid-19 Second Wave, anyone?) shall almost certainly prove game-changing for this share price due to some surprising big picture prospects.
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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