Bos Global: Above November gap targets towards 20p

1 mins. to read
Bos Global: Above November gap targets towards 20p

One of the golden rules of investment is that you should understand the businesses you are invested in. Even after interviewing Bos Global (LON:BOS), I am not 100% sure that I understand the technology. But it may not matter in the end.

I have to say that the “Rocket Launcher” formation seems to be serving me quite well in the great small caps recovery of 2017. This can be seen on the daily chart of Bos Global where the big buy signal actually came into being as long ago as November, when there was a gap higher through the 50 day moving average, now at 7.75p, and then below 5p. The gap remains unfilled and hence the platform of the bull run we have seen since the autumn remains very much in place – hence the Rocket Launcher nickname.

What one would expect to happen next is that there will be progress within the rising trend channel drawn from the end of last year. This is particularly the case if we can see a decent weekly close above the 50 day line on Friday. If we are treated to such a scenario the upside for shares of the business productivity software group could be significant.

The favoured destination over the next 2-3 months if we see the 50 day moving average held over the near term is regarded as being as great as the late 2016 resistance line projection currently pointing as high as 20p.

bos global chart

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