There are plenty of possible ways of interpreting what “life assistance” is, but at least as far as CPP Group (LON:CPP) is concerned, we have a daily chart which is encouraging.
I have to admit that today, St Patrick’s Day, is the day that I have actually probed into the fundamentals of life assistance group CPP. This was just to check whether the news flow could possibly match the present excitement generated by the price pattern on the daily chart.
In fact, it does, as the group has just bought an Irish counterpart for €1m. For those who are wondering what life assistance is, part of it centres on rescuing customers who have suffered flight cancellations, amongst other adverse experiences.
What can be seen here from a charting perspective is that the shares are trading in the aftermath of an as yet unfilled gap to the upside. This is a setup I describe as the “rocket launcher”, as it very often represents the take off ahead of a solid push to the upside.
In fact, so far this has proved to be the case, with progress within a rising trend channel which can be drawn in from as long ago as August last year. The top of the channel is pointing to a notional 20p target, a destination which is expected to be hit over the next 2-3 months.
At this stage only back below the floor of the channel at 12p on a weekly close basis would really delay the upside scenario.