Where next for these polar opposite shares?
Our chartist examines two very different shares. Here are the essential levels to watch.
23rd July 2020 08:48
by Alistair Strang from Trends and Targets
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One share recently enjoyed a stratospheric surge, the other is struggling from the current pandemic. Our chartist studies the potential for future share price movements.
MobilityOne (LSE:MBO)
A share which, at one point, achieved a 1,200%-plus rise in a single day deserves mention.
MobilityOne (LSE:MBO), declining from its high of 57p managed to close the session at 15.5p, up a magnificent 244% from its opening price of 4.5p.
This AIM share looks painfully capable of describing "pump & dump" characteristics, and we'd guess it was perhaps hyped in an internet chatroom.
From looking at the price movement trajectory from noon when it all kicked off, we'd now be alarmed should the price wither below 10p as reversal to 2.8p looks possible.
We cannot calculate below such a point. About the only saving grace, if this is indeed the victim of "enthusiastic conversations", usually a price will once again surge upward while a number of true believers again get excited.
The price needs above 23.7p to perhaps justify 33p, then we'd suspect relaxation again. The share now needs to trade above 57p to give any sort of hope the movement was based on anything factual.
In this instance, we're not bothering with a chart. The single-day price movement looks as interesting as a long dead tree, alone in a desert of sand.
Frasers Group (LSE:FRAS)
Mr Ashley's plans to use Frasers (LSE:FRAS) to create a "Harrods of the High Street" must have taken a fairly solid hit, thanks to Covid-19.
The UK government, ignoring his request for alleviation of business rates, certainly isn't helping any idea of a return to normality with the end of lockdown.
The Frasers Group announcement that they shall not be making any rental payments in respect of occupied property, until the level of trade reaches the point at which the parties envisaged when they drew up the lease, also makes quite a lot of sense.
All things considered, it's doubtlessly not been a fun year for many landlords with retail properties.
Presently trading around 282p, the share needs to exceed 290p to give some hope for recovery, allowing an initial 302p with secondary, if exceeded, a trend testing 323p.
Visually, achieving the 323p level also comes with a promise of hesitation, due to prior highs.
The share price needs to sell itself below 275p to cause alarm, as this calculates with a reversal potential at 247p initially with secondary, if broken, down at a bottom (hopefully) of 221p.
We suspect it intends to reach 221p before things get better.
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 or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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