IQE: How far will this AIM favourite's rally go?
With a 13-month downtrend seemingly over, our technical analyst tells us what's in store for IQE.
4th March 2019 09:42
by Alistair Strang from Trends and Targets
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With a 13-month downtrend seemingly over, our technical analyst tells us what's in store for IQE.
Sometimes, it's enjoyable attempting to link a funny experience to a share price movement. In the case of IQE (LSE:IQE), I'm reaching to find any link between their recent price growth and something which happened to me last week.
As regular readers know, I've been doing chemo to treat leukaemia and my six months of treatment completed on Friday. My brush with utter stupidity occurred, leaving the hospital on Thursday evening, opting to leave the chemotherapy plumbing attached to my right hand.
Relaxing in the back of a taxi, a problem reared its head. While I did have money to pay, it was a 10 pound note in my right-hand trouser pocket. Poking my fingers into my tight blue jeans, the plumbing attachment stopped my hand tantalisingly short of the money. My left-hand pocket contained just three quid in coins.
As we got closer to the ferry terminal, panic was setting in as there was no way a complete stranger was going to dig around in my pocket for that 10 pound note.
Eventually, explaining to the driver I'd a problem reaching my money, he parked alongside a school bus while I undid my belt and trousers, unzipped, pulled trousers around my waist until my left hand could reach over, push the pocket lining up, and reveal the 10 pound note. It was only when I handed it over did I notice the sign "You can now pay by card".
And so, it turns out there is a link for IQE and it's to do with reach.
The share price is showing an interesting potential for the near term. Essentially, it only needs to exceed 93p and we'll regard it as heading up to an initial 101p next. If exceeded, our secondary is at 107p.
While neither movement is particularly interesting, it affords the share the chance to reach above the glass ceiling which has formed at 100p. Should the price find an excuse to close above such a point, it moves into a bigger picture range where longer term moves to an initial 117p are expected.
If exceeded, secondary is at 137p and the hope of a challenge against the 'blue' downtrend which dates back to the year 2000. Closure above such a level will prove significant for longer-term growth.
Finally, about the only real caution comes if it drops below 63p currently. In such a case, 26p is the best hope available as bottom!
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.
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