This tiny bioscience energy company's share price has been slavishly following the downtrend since 2017. Chartist Alistair Strang and his software analyse key recovery potentials.
Regardless of whether it's the AIM, the FTSE 250 or the FTSE 100, the UK stockmarket can be a funny old place. So funny, the same jokes are often repeated and traders just love falling around laughing. Or at least, having hysterics...
With Eqtec, the share price is shaping up for a funny one liner. As the chart shows, the share price has been slavishly following the downtrend since 2017. While a whole bunch of traders are carefully watching this line, perhaps already having bought into the dream in anticipation of a trend break, the market will often enjoy a bit of a giggle at their expense by plunging the price prior to any trend break.
In the case of Eqtec, we should not be aghast if movement anytime soon below 0.7p leads the price down to 0.45p before any sort of bounce. There are some pretty horrible dangers, should 0.45p break, as we can no longer calculate a bottom.
Often, we eschew analysis on shares where the price is under 1p but this lot are interesting. Despite a couple of lags in trading over the years, the price had a logical "ultimate" bottom at 0.25p. It appears the share hit this level a few months ago, leading to hope for the future.
At present, we'd demand the price better 1p to suggest some coming recovery to an initial 1.45p. While quite useful, above 1.45p allows continued acceleration to 2.25p and beyond at nearly 4p.
For now, it's probably worth keeping an eye on, just in case the market decides to have fun!
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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