Octagonal looks set for considerable upside

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1 mins. to read
Octagonal looks set for considerable upside

One of the better aspects of trading/investing via technical analysis is that one can head above the clouds as far as the fundamentals of a company are concerned. Clearly, the odd profit warning and placing can sometimes slip through, but this is the exception rather than the rule.

Octagonal (OCT): Sharp, Positive Momentum

Financial services group Octagonal is certainly something of a dark horse, with the fundamental googly provided by the now commonplace trolling by the odd financial blogger with the typical axe to grind. But this can be set against the fact that we have seen a persistent and consistent basing on the share price chart over the past 12 months and more. The biggest standout on a charting basis is the way that July delivered a large gap higher through both the 50 day and 200 day moving averages. This was effectively a massive turnaround signal which the price action has built on. Indeed, for the near term we see the stock progressing within a rising trend channel which can be drawn in from as long ago as April. The message at the moment is that provided there is no break back below the floor of the channel / 50 day moving average at 1.37p we could be set for considerable upside. The favoured 1-2 months upside at this stage is regarded as being the 2016 resistance line projection heading as high as 3.25p. Only cautious traders would wait on a clearance of the 10 day moving average at 1.80p as a momentum trigger before taking the plunge on the upside.

octagonal-chart


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