Will Cellular Goods' ball come back into play?
13th October 2021 07:52
After covering this share a few weeks ago, independent analyst Alistair Strang takes another look at progress.
We previously reviewed Cellular Goods (LSE:CBX) a couple of weeks ago, the share price taking just four sessions to reach our initial target 7p. But then, despite exceeding the 7p level with an early lunge to 8.4p, the price has studiously avoided our secondary of 9.1p.
To be honest, we’re not terribly concerned, the company website continuing to show updates with launch dates given. In fairness, exceeding our 7p target and swelling to 8.4p is being regarded as a good thing, ideally a sign of the future.
After all, it’s rare for a price to simply keep moving in a single direction. If that were the case, the market would be no fun, would it?
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For now, we suspect the number to watch is around 7.675p, this being the level the share price needs to improve on currently to exceed the Blue downtrend on the chart.
An event such as this apparently calculates with the potential of further movement to 8.65p next. Our ‘longer term’ secondary is debateable, thanks to an absurd logic we employ in-house. Essentially, if the recent surge to 8.4p was “simply” our 7p target being exceeded, we should now give 10.6p as a viable secondary.
However, if the surge to 8.4p indicated the share lacking strength to reach 9.1p, then 9.1p must be regarded as the next target. The scenario is a bit of a head-scratcher but, in the absence of negative news flow, we remain optimistic.
As always, there’s another side of the coin. Presently trading around 6.9p, the share needs to weaken below 5.8p to give pause for concern This is not an enjoyable picture, introducing the threat of ongoing weakness to 4.8p and a new low.
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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