Interactive Investor

Remote Monitored Systems: are we about to see a new high?

The company’s share price has been all over the place recently. Our chartist searches for a catalyst.

25th November 2020 09:43

Alistair Strang from Trends and Targets

The company’s share price has been all over the place recently. Our chartist searches for a catalyst.

Remote Monitored Systems PLC (LSE:RMS) 

For some reason, we received several emails regarding Remote Monitored Systems (LSE:RMS) and its future share price prospects. 

Initially, slightly aghast at the apparently boring reason for their existence (to produce systems to monitor rotating shafts!), the picture on their website of a windfarm reminded there's more than one type of rotating shaft. Amazingly, it's possible to relate a quite exciting rotating shaft story from personal experience.

Once upon a time, with dreams of taking a motorcycle racing, a home engineering project saw a 1970's Triumph Bonneville engine transformed into a machine capable of delivering great things. Meticulous care was taken in the modifications, the crankshaft carefully balanced by a company famed for their jet turbine engines. 

Long story short, it was fast by any standards and the finished bike was within weeks of being loaded in a van for a pilgrimage to the Isle of Man and the TT races.

And this is where it all went wrong. At around 90mph in second gear, the crankshaft decided it'd rather be somewhere else and disintegrated. Parts of the engine even pierced the petrol tank. 

So yes, there is a good reason for LSE:RMS, as sometimes shafts go wrong. 

A quick perusal of YouTube reveals plenty of videos of windfarms self-destructing, demonstrating a very real need to monitor rotating shafts. 

Another, painful, personal experience was when a propeller shaft on a motor cruiser vibrated so badly it allowed water (the stuff supposed to be outside the boat) into the hull, with expensive consequences.  

Needless to say, RMS also produce sensor equipment for this scenario too...

The company’s share price has been all over the place during November, producing a truly confusing picture for the immediate future. 

At first glance, it appears movement next below 2.45p risks quite a degree of danger, calculating with a reversal potential of 1.15p and hopefully (thanks to the immediate uptrend), a bounce.

The share has spent the last four sessions messing around and we'd suspect there's some sort of hiatus while awaiting news. 

The price needs to exceed 3p (presently 2.55p) to give hope for some strong coming movement. 

Such a trigger works out with an initial ambition of 4.5p with secondary, if exceeded, a slightly worrying 6.6p. 

We say 'slightly worrying', due to the visual suggestion of the price failing to exceed its prior high. This is rarely a good signal.

Overall, if the market is paused, awaiting an important news release, the highest we can currently calculate is 7.5p. Anything capable of exceeding such a level enters a brave new world for the longer-term.

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. 

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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