Here's why Faron Pharma is worth watching for a future trigger
Faron took a dive last year, but can it turn things around? Our chartist looks at the key numbers.
25th February 2019 08:33
by Alistair Strang from Trends and Targets
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Faron took a dive last year, but can it turn things around? Our chartist looks at the key numbers.
Faron Pharma (LSE:FARN)
Faron Pharmaceuticals (LSE:FARN). They are, after all, in the cancer trade but surprisingly, price movements suggest this is a pretty dangerous share to play with. When last reviewing it, we warned of the danger should the price manage to close a session below 57p.
The given implication would be our 'bottom' calculation could be broken and therefore we could no longer calculate how far down it could fall.
Unfortunately, not only did it close just below 57p, the share price has spent a couple of months flirting just below the 57p level and it was only in February did it recover just above this level.
Thus, there is no doubt the drop level was indeed valid and equally, it appears the market has acknowledged this. We've painted a thick red line on the chart at the 57p level.
As sometimes happens with this sort of nonsense, when the market exhibits awareness of the dangers of a "bottom", it can be worth watching for miracle panic recovery signals and in the case of Faron, the blue line on the chart is liable to prove interesting.
The situation now suggests should this trade above 77p, it should expect recovery to an initial 87p. Our secondary, if bettered, calculates at 102p.
For now, it's dangerous but worth watching for a future trigger.
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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