Interactive Investor

Here's what the analyst thinks about Tern shares

Internet of Things is growing fast and could be a catalyst for upside. Our chartist runs the numbers.

16th October 2019 09:15

Alistair Strang from Trends and Targets

Internet of Things is growing fast and could be the catalyst for upside here. Our chartist runs the numbers.

Tern (LSE:TERN) 

This is proving a bit of a puzzle. For the last few weeks, we've been anticipating it finding an excuse to bottom just above the 4p level.

We're starting to wonder if it's a Brexit inspired share, something which promises to do something which never actually happens.

Thus far, the lowest achieved has been 7.65p and weakness below such a level remains pointing at 4p, but we're having some doubts.
 
The reason for our hesitation comes from the plethora of coloured lines on the chart. There appears little doubt Tern's (LSE:TERN) share price is simply ignoring prior downtrends with the result something else must be driving the current period of hiatus and we'd guess it isn't chatroom gossip!

Instead, it would be reasonable to assume the market is patiently waiting for some sort of news, perhaps an indication "The Internet of Things" is actually becoming a "thing". Or perhaps one of their investments is expected to come to fruition.

In the meantime, we'll remain cautious, looking carefully at the glass ceiling which has formed at 13.25p. Only movement above such a level is liable to make us raise an eyebrow as this should trigger recovery to an initial 18p.

If exceeded on any initial surge, secondary calculates at 20p and visually yet another glass ceiling awaits any rising cycle. Only with closure beyond such a level will we enthusiastically proclaim the potentials of 33p in the future.

At present, it's worth remembering of the dangers below 7.65p and perhaps simple remembering patience.

Source: TradingView 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. 

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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