It seems appropriate to update the technical position on recent Chart of the Day favourite, Bos Global Holdings (LON:BOS).
Although I have interviewed Bos Global on a couple of occasions, it has to be admitted I might have to interview the company a hundred times to get the full picture regarding the business productivity software and how it works.
Nevertheless, any gaps in this fundamental framework have been more than made up for by the first rate reversal pattern which has been brewing in recent months. Indeed, the 30% jump in the stock today in the wake of the latest trading update implies that we are looking at a very strong play, given the milestones the group is saying it has achieved of late.
The good news is that there is to be a new plan to expand the business, something which will disappoint the bears who have recently been on the front foot. Nevertheless, as a chartist it is always good to define boundaries, with the best one in place at the moment being the 200 day moving average at 8.5p.
While the shares remain above the 200 day line on a weekly close basis, well above the floor of an as yet unfilled gap to the upside from May at 5.5p, we could expect to see a push towards the main resistance at 15p over the next 1-2 months. But of course be wary of those bears….