Zephyr Energy revisited and Conroy Gold
7th December 2021 07:50
by Alistair Strang from Trends and Targets
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One of these AIM companies has had a phenomenal 2021. The other has just had a growth spurt. Independent analyst Alistair Strang studies the form to see what 2022 might bring.
From what we can see, the only thing these two companies have in common is they both trade on the London Stock Exchange. But, for some reason, we’re received a few emails asking if we’d consider reviewing them. As inspiration is always welcome, we’re delighted to do so, especially as both are exhibiting some potentials.
Firstly, Conroy Gold and Natural Resources (LSE:CGNR) share price appears to be cheerfully ignoring the present hiatus in which the price of gold finds itself. Our bottom line, presently, is that unless the price of gold manages above US$1,871, it’s at risk of remaining quite boring.
Additionally, it must be pointed out that gold is presently trading in a region where it only needs someone to look at the price the wrong way and it risks reversal to US$1,623.
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For now, movement on Conroy's share price above 32p looks capable of gains toward an initial 36p. If bettered, our secondary calculation works out at 49p, and this risks an interesting prospect for the longer term. A gain such as this carries the potential for the price to close a session above 46p, beating its previous high at the start of this year and, therefore, allowing a longer term 69p to enter the frame.
Source: Trends and Targets. Past performance is not a guide to future performance
From the start of July this year, Zephyr Energy's (LSE:ZPHR) share price has been essentially messing around. We reviewed them at the start of September, giving a trigger level of 7.1p and promising the heavens if the price exceeded this point.
Rather spitefully, the share indeed exceeded our trigger, but the best achieved has been movement to 7.8p, pretty distant from our initial ambition of 8.3p. However, when we study the strength of movements since July, we’re given sufficient reason to revisit our tea leaves to amend the future potentials.
There are slight changes to our calculated results as now above 7.8p looks capable of movement to an initial 8.9p. Our longer-term secondary, if the initial is bettered, works out at 12.2p. If everything intends to go horribly wrong, the share price needs to drill below 4.7p to justify concern.
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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