When will this small-cap share undergo a makeover?
17th August 2022 08:16
by Alistair Strang from Trends and Targets
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Independent analyst Alistair Strang sets out what he thinks could happen to the cosmetics supplier's share price.
Probably the most common question we receive is: “Has xyz bottomed?”. It’s often a difficult question, requiring examining quite a few criteria in the hope of discoveringjust how long a bit of string is!
Revolution Beauty Group (LSE:REVB)is a share where it’s actually impossible to define a bottom, the price falling from 170p to 17p in just a year, with what looks like an out-of-control descent. In other words, at no stage could we have calculated a logical bottom for the share price.
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At best, all we can currently offer is a series of “best-case” scenarios, where we can perhaps postulate on situations where surprise price recovery looks possible.
The immediate situation suggests movement above 28.5p should promote recovery to an initial 37p with secondary, if bettered, at 46p and a possible collision against the immediate downtrend in blue. Closure above 46p will make it difficult not to assume ‘bottom’ is in, this taking the share price into a region where a future cycle to 86p becomes a viable ambition.
The harsh reality of the immediate situation is pretty simple, until such time the share price actually closes above the blue downtrend, it remains trading in a zone where it’s simply not possible to calculate a logical bottom.
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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