Where next for AIM-listed Eqtec?

by Alistair Strang from Trends and Targets |

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.

Eqtec (LSE:EQT)

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.

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.

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