FTSE 100 - and Covid opportunities for Deepverge?
Our chartist takes his weekly look at the biggest UK index and examines this medical firm.
8th January 2021 08:37
by Alistair Strang from Trends and Targets
Share on
Our chartist takes his weekly look at the biggest UK index and examines this medical firm.
FTSE for FRIDAY (FTSE:UKX)
The UK index has been behaving fairly positively for the last few sessions, with no signs of renewed Covid-19 hysteria affecting the market. Quite the opposite in fact, despite the media now reporting patients in the north of England are being evacuated to Scotland, due to English hospitals being at capacity.
The immediate situation for the FTSE 100 (trading at 6,856 at time of writing) is fairly hopeful, with the potential of movement above 6,904 points suggesting ongoing recovery to an initial 6,958 points. Secondary, if bettered, could be a longer-term (or later in the day!) calculation of 7,064 points.
If triggered, the tightest stop is unpleasantly wide at 6,821 points. As shown on the chart, this sort of upward surge exposes 7,361 as a level where some sort of hesitation almost must occur eventually.
Obviously, there must be a real risk pandemic panic shall take hold, with the result we'd be alarmed should London find a reason to slip below 6,741 points. Below this level reversals risk becoming real, with the potential of an initial 6,688 points. If broken, our secondary calculation comes in at a shocking-looking 6,383 points.
Source: Trends and Targets. Past performance is not a guide to future performance
Deepverge
I had an email asking me to look at Deepverge (LSE:DVRG), and it's possible the share price of the company (trading around 33p currently)should prove meaningful to the market. Without doubt, something positive is happening with this company whose website boasts of their work in 'artificial intelligence, clinical research, medical device and life science’.
Needless to say, they also find space to mention Covid-19 in their portfolio of activities. The company’s share price is trading at a new high level, giving a fairly strong impression continued movement above 34.75p should attempt an initial 37.25p with secondary, if exceeded, a rather more useful looking 44p.
This sort of thing should take the price pretty close to the Tesla (NASDAQ:TSLA) zone, a level above which we cannot calculate, presenting a 'the sky is the limit' scenario. In the case of Deepverge, if it finds a reason to exceed 47p, goodness knows where it could end up. For now, the price would need to go below 23p to cause panic.
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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.