Chart of the Day: Inmarsat

Inmarsat, the mobile satellite services group, seems to be rather less space age at the moment than one might have expected on the fundamental front. But at least from a technical perspective it would appear the stock is ready to head to the upper reaches of the stratosphere.

Inmarsat (LON:ISAT): Robust Chart Setup

Ironically, it may be the case that Inmarsat has most often grabbed the headlines with investors for not doing something, rather than doing it. This came with the latest episode where the company backed out of taking over troubled, or perhaps more accurately, sabotaged, smaller rival, Avanti Communications (LON:AVN). But looking at the daily chart it can be seen how there has been a very strong-looking basing taking place here since the stock was ravaged by April’s extended bull trap top above the 200 day moving average at 936p currently. Since then the price pattern which has been mapped out most closely resembles the classic Cup & Handle reversal, one of the strongest around. The added plus point is the way the stock has remained above the 50 day moving average, now rising at 757p, since the handle was formed at the end of June. The view now is that while there is no end of day close back below the 50 day line one would be looking for significant upside within a wide rising trend channel which has been in place since as long ago as April. The top of the channel is heading as high as 1,150p, the notional 2-3 months time frame target.