dotDigital: Rising trend channel could lead to 100p

By
1 mins. to read
dotDigital: Rising trend channel could lead to 100p

Perhaps rather interestingly, dotDigital (LON:DOTD) is not a company whose shares normally appear on the most traded or trending of the day. But that is not the case today.

Although the tech space is traditionally a little weak in delivering profits, especially from the early days, there are always exceptions to prove the rule. One worth bearing in mind is dotDigital, which is a bulk email specialist.


On the face of it there does not seem to be much of an edge possible in this space, especially given the way that most of us might imagine we can mimic part of the business model here. However, the good news for shareholders of dotDigital is that not only is there an annual £4m plus profit for the past year, we are also seeing fresh gains made in the key U.S. market, as reported earlier in 2017.

As far as the technicals are concerned on the daily chart it can be seen how one can draw in a rising trend channel from as long ago as the beginning of 2015. In fact, the big breakthrough was in the middle of that year with a push above the 200 day moving average then towards 30p, now up to 58p. The message is that provided there is no weekly close back below the 50 day moving average at 68p, it would be logical to look to a 100p target over the next 3-4 months at the top of the rising 2 year price channel.

DOTD chart

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *