A second look at Genedrive, a stock with room for movement?

by Alistair Strang from Trends and Targets |

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The share price has had a confused few months, but it could thrive in testing times.

Genedrive Plc

Medical testing and analytical company Genedrive (LSE:GDR) certainly experienced a confused eight months since I last reviewed them, successfully hitting our drop targets, then bouncing and (so far) hitting our initial upward target.

Sometimes, we think the tea leaves were stirred with too much vigour and the price needs another hard look.

Listed on the UK AIM market in 2007 and originally named Epistem, Genedrive is certainly not the ‘new kid on the block’ jumping on a Covid-19 bandwagon.

Their activities appear truly international, with a share price which once graced nearly six quid. It has also fallen as far as 8p, leaving a lot of room for movement in every direction. Even the last year has seen the price vary from 300p down to 38p while the company swims in the fast waters of pandemic speculation.

We're starting to suspect an attempt is coming to break free from our growth target level of 150p.

While our report last year suggested a secondary of 171p, we should now rework the numbers as there's every chance the 171p level shall be ignored.

Gains now exceeding 164p calculate with a potential of movement to an initial 197p with our longer-term secondary, if bettered, working out at 232p.

Unfortunately, this could easily become 261p, thanks to the circled gap from January this year confusing things a little. One problem we have with manipulation gaps is fairly obvious. If there are no numbers, how the heck can we analyse them!

The target level of 261p is fascinating, given the convergence with the blue downtrend which dates back to 2013, certainly justifying a reason for a pause in any rising cycle.

For it all to risk going horribly wrong the share price needs to reverse below 126p to give the first indication of bad test results coming. Weakness such as this risks triggering reversal to 95p with secondary, if broken, at a bottom of 56p and hopefully yet another bounce.

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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