What are the odds of Tern shares recapturing former glories?

by Alistair Strang from Trends and Targets |

Its shares have livened up again, so our chartist looks for clues at this internet of things specialist.

Tern Plc (LSE:TERN) 

A core ingredient in time travel stories generally revolves around the hero's inability to arrive at the correct date and time. 

Back to the Future provided a great series of films and Dr Who, a continual TV series. Albeit one with currently a rubbish Doctor! We never conceal an inability to be concise with timeframes. 

After all, if Dr Who or Marty McFly can't do it, who can?  Tern (LSE:TERN) manages to illustrate this quite neatly.

When reviewing Tern last December, we warned of the dangers below 12p as a visit to 7.5p was possible. 

The price broke 12p in February yet it was to take until April before it achieved our drop target, thankfully eventually bouncing by double. 

Since then, it has done very little other than assure the market it's still trading by going up and down a bit. 

We're not going to suspect further price recovery is upon it unless the share manages to close a session above 12.65p or, trades intraday above 13.25p.

Either criteria should prove fairly significant, allegedly launching the price into a region where growth towards an initial 15.75p makes sense. 

Longer-term (or the next day), secondary calculates at 20.5p. There is something slightly interesting about the secondary, given the prices history since October last year. 

A glass ceiling appears to be lying in wait and we'd be surprised if it failed to promote some hesitation in any rising cycle.

We'd be remiss if we failed to inject some misery into our thinking. Below red, presently around 8p, would be alarming as it permits reversal to a new bottom of 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, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

get more news and expert articles direct to your inbox
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio