Synairgen shares: what happens next after Covid boom?
After surging 500% yesterday on Covid treatment success, our chartist looks at the share's potential.
21st July 2020 08:42
by Alistair Strang from Trends and Targets
After surging 500% yesterday on Covid treatment success, our chartist looks at the share's potential.
Synairgen (LSE:SNG)
Synairgen (LSE:SNG), by following stock market rules, ensured we received a pile of emails regarding their wild price movements.
The company were obliged to report preliminary results of a Covid-19 trial, and there is no doubt genuine reason for excitement was given.
Obviously, the usual caveats apply as their work has not been "peer reviewed" nor, obviously, has all the data been made available. But a glance at the figures certainly promotes encouragement.
It's important to remember the caveats. Many folk will retain painful memories of the "Desire Petroleum" clause, on a Monday, they announced discovery of oil but by Wednesday, conceded initial test results were wrong and it was, in fact, water! Needless to say, the share price never recovered from this little whoops.
But a glance at Synairgen's news tended to confirm solid reasons for market optimism.
With 101 folk involved, half the participants were given the treatment across nine different hospitals. The other half were given a placebo.
Reading the results certainly gives hope for the future and Synairgen CEO was quoted as saying, "We couldn't have expected much better results than these."
On the basis the hype is completely genuine, we can calculate some fairly useful potentials for their share price.
Movement next exceeding 238p (doubtless possible as the company featured on major evening news bulletins) looks very capable of reaching an initial lame 250p.
If exceeded, secondary calculates at 293p but, to be realistic, the price could runaway higher to 333p without too much difficulty.
There's absolutely no rule stopping the price bettering 333p, aside from the fact we cannot presently count any higher.
If it's all going wrong, we'd be concerned if the price found an excuse to relax below 138p as this permits relaxation to 105p initially with secondary, if broken, at 52p.
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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