Chart of the Day: Techfinancials

I have met the management of Techfinancials enough for them to be fully aware of my comments regarding the progress of my middle age. But as far as stock market sentiment is concerned, it is this business’s coming of age that we’re interested in.

Techfinancials (TECH): 40p Best Case Scenario Target

The kind of charting I like for the Chart of the Day is the fate of Wishbone Gold (WSBN), yesterday’s contender, which has been up over 40% for Tuesday’s session to date. However, this does not mean that we should ignore the slow burn situations such as Techfinancials, a technology company which delivers trading platforms to brokers as well as having its own B2C offering. Given how well counterparts such as Plus500 and Playtech (PTEC) have done over recent times with valuations of hundreds of millions and more, it seems a bit mean of the market to come up with a £10m valuation on Techfinancials. But with a decent ability to generate cash, and the possibility of this company paying a dividend next year, the slow burn should start to accelerate into a full blown bull run. The daily chart predicts a target of around 40p on a 3-4 month perspective at a mid 2016 resistance line projection, especially in the wake of the latest break above the 200 day moving average at 12p.