Sirius Minerals: A crucial price level to keep an eye on
Sirius shares recently hit a key target on their way down, prompting our chartist to take another look.
1st August 2019 09:55
by Alistair Strang from Trends and Targets
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Sirius shares recently hit a key target on their way down, prompting our chartist to take another look.
Back in June, Sirius Minerals (LSE:SXX) finally hit our 13p drop target, something we'd been moaning about since February!
Crucially, it did not really break the target (it hit 12.98P) and exhibited a half decent bounce. But price moves are proving reminiscent of AIM shares whose price seem controlled by chatroom gossip.
It starts to appear the at the 17p level, which shall prove crucial anytime soon for Sirius. In the event the share price manages trade above such a level, recovery to an initial 19.70p calculates as comfortably possible.
Our secondary, if such a level bettered, computes at 25.7p and we suspect a rise will falter around such a level. Surprisingly, future recovery beyond this point looks like growth in 10p increments, something which we simply do not understand.
Otherwise, the problem level of 13p remains an issue until such time Sirius manages close a session above 18p. We'd be inclined to take this as a pretty solid movement into safety, even though the price has not exceeded blue on the chart.
Below 13p and it still looks like Sirius shall eventually bottom at 4p.
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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