Versarien's crash: Where now?
Our chartist accurately predicted a crash at this AIM stock. Here's where he thinks it will go next.
20th February 2019 08:51
Our chartist accurately predicted a crash at this AIM stock. Here's where he thinks it will go next.
We reviewed Versarien (LSE:VRS) last week, assuming it was going to take time to reverse from 114p down to 87p. Recent price moves explained, concisely, why we avoid giving timescales.
We're not Dr Who and a share price can make all the right (or) wrong steps, then shuffle to our target levels eventually, the speed element defying any logic. But generally, it will get there!
Source: Trends and Targets Past performance is not a guide to future performance
Now Versarien has achieved both target levels in just 7 days, we've been bombarded with requests for an update. It has managed to achieve something quite dangerous by closing the session below our secondary target level.
This places the share at risk of moves now below 85p opening the door for travel down to 62p. This time, our secondary is quite distant at 40p and a level where it is expected to bounce.
Crucially, though, there's a glimmer of hope at the 80p level, a point where we suspect it should bounce fairly soon rather than continue trashing investors hopes. But one iota below the 80p point and 62p becomes best hope for the future.
At present, it's fairly meaningless the point the price requires better to escape this misery. The pace of descent has been so brutal the share actually needs a bounce to exceed 110p just to suggest the immediate downtrend has failed.
For now, our best hope in the immediate future will be of 80p producing some sort of rebound.
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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