Petropavlovsk: will we see a new high this year?
This year has seen some recovery plus as a shareholder revolt. Our chartist looks for potential catalyst.
13th August 2020 10:00
by Alistair Strang from Trends and Targets
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This year has seen some recovery as well as a shareholder revolt. Our chartist looks for potential catalysts.
Petropavlovsk (LSE:POG) certainly must feel like a fully paid up member of the ‘wish I could swipe it off the table’ brigade.
The London based gold mining company, once trading above £17, has seen the value brutalised, eventually reaching a bottom of 4p in 2015.
This year has seen some recovery, insignificant in the great scheme of things. We're interested whether the recent shareholder revolt, which ousted the chairman and chief executive and called for an independent investigation of transactions over the last three years, shall finally allow the price to commence some recovery.
Presently trading around 32p, we shall regard moves anytime soon above 36p as hopefully triggering some slight recovery to an initial 41p with secondary, if exceeded, at 45p.
Obviously, for those whose funds have been on a protracted holiday, neither ambition is particularly noteworthy but should 45p make a guest appearance, this shall take the price above the prior high this year.
The effect, from our perspective, shall be a hope of some recovery fuelled by historical big picture price levels, as the chart shows.
The price has spent the last few weeks adhering to the downtrend since 2011.
Movement above 45p would strongly suggest a genuine trend break has occurred, permitting recovery to an initial 58p with secondary, if exceeded, at 76p.
Longer-term (or much sooner if positive news is involved) we can see 116p as a major point of interest.
All the price needs to do is start going up!
*The ‘unwanted cats’ were inherited from an ill relative.
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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