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Spreadbet Magazine editor Zak Mir takes a look at the technical position of some of the bulletin board stocks of the moment amongst private investors.
Here are the key points from today’s video:
A sharp spike through the top of a May triangle / falling wedge formation suggests at least an intermediate rally is on its way for Quindell.
The best case scenario upside on offer currently is a return to the main post June resistance through 250p over the next 2-4 weeks.
The stop loss is as tight as an end of day close back below the 20 day moving average at 185p or back below the 170p zone.
Despite the risk of the latest setup up being a triangle continuation to the downside, an intermediate rally is expected.
The favoured upside is towards the 50 day moving average at 42p, however briefly.
An end of day close back below the 10 day moving average at 31p is the tight stop loss here.
There is a consistent looking rising trend channel on the daily chart from the early part of 2014.
August price action to date has consisted of a narrow bear trap rebound from below the 50 day moving average at 0.43p.
The implied technical target over the next month is as high as 0.7p at the 2014 resistance line projection, at least while the 50 day line is held.
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