Interactive Investor

Sirius Minerals shares: What chance a Christmas miracle?

With the shares punch drunk since the September crash, our chartist studies trading potential.

3rd December 2019 08:49

Alistair Strang from Trends and Targets

With the shares punch drunk since the September crash, our chartist studies trading potential.

Sirius Minerals (LSE:SXX) had been getting painful, achieving and even breaking our prior drop target at 3.3p.

However, it is possible the share is now preening itself in the hope of providing a little Christmas miracle. Aside from the unpleasant detail it's now calculating with an "ultimate" bottom of minus 17p!

However, if we leave the dreadful reality of real life aside and instead review movements since May of this year, Sirius has managed to exceed the immediate downtrend (presently at 3.41255p) and, thankfully, has spent the last few sessions hovering just above the trend, rather than retreat below.

Without a doubt, it is "fingers crossed" time as movement now above 3.9p is supposed to generate a lift to 4.3p next.

As the inset highlights, it appears clear the market is reacting to the trend, so hopefully the price can find an excuse to do something positive.

If movement exceeds 4.3p on any initial upward surge, our secondary calculates at 5p.

Visually, such an ambition makes sense as it takes the share price into the region from September, when the price was manipulated downward to 4.7p. It's the sort of price level where the market would opt to form a glass ceiling until such time Sirius's hopes for the future improve.

Then again, there is that minus 17p calculation. Numbers can be funny as presently, SXX actually needs above 17p to essentially cancel this big picture drop potential.

In fact, even above 13p would regain the historical uptrend, giving considerable hope for the longer term. We'd certainly have strong concerns, if the price manages retreat below the blue downtrend at 3.41p (as in, actually close below the trend) thanks to reversals becoming very probable.

In such a scenario, last chance salon is at 1.4p.

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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