Falanx Group: 13p technical target

1 mins. to read
Falanx Group: 13p technical target

You might have thought that 2016 was going to be the year for cyber security group Falanx (LON:FLX). However, it may be the case that 2017 will be the year that the company comes up Trumps.

I have interviewed cyber security company Falanx on several occasions, with the impression each time being that this is an opportunity to profit from the miseries of hacking and cyber crime.

Given that the headlines have been dominated by alleged Russian intervention in the US Presidential Election, the 1 billion Yahoo email hacks and almost daily financial sector breaches, one would intuitively take the view that this is a stock on the Zeitgeist.

The position on the daily chart, however, shows that there has been an extended bear trend in place, with this pattern only broken by the rise for the shares back above the 200 day moving average at 5.14p.

This leads us to conclude that at least while there is no weekly close back below the 200 day line the upside here could and should be towards the top of a 2016 price channel with its resistance line projection heading as high as 13p.

The estimated timeframe on the move is regarded as being as soon as the next 3-4 months. This is especially the case while there is no break back below the floor of the price channel at 6p over the next week or two.


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