Graphene Nanochem: Wedge break could lead back to 18p

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Graphene Nanochem: Wedge break could lead back to 18p

It would appear that courtesy of the latest claims regarding wonder substance Graphene, the phrase “Water, water everywhere and not a drop to drink” could be outmoded.

One could be forgiven for thinking that, purely on the basis of the alleged breakthrough with the Graphene filter to turn seawater into fresh water, the share price of any company with Graphene in the name would have soared to the heavens. Of course it is early days, and there is little doubt that there has been something of a bubble in the mini sector.

Ironically, it was always going to be a big ask for valuations to bounce back after hitting the highs, and perhaps with the saltwater episode this may allow investors to reinvestigate the situation. As far as Graphene Nanochem (LON:GRPH) has been concerned it can be seen how there has been an extended bear run in the shares of the chemical specialist for over three years, with the main hope being a positive resolution to the debt restructuring by the middle of this quarter.

The hope is that the present falling wedge pattern would be broken at 8p to lead the shares back to 18p. However, given the history of the stock one would certainly wait on a break above 8p on a weekly close basis before pressing the buy button.

grph chart

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