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Satellite Solutions: Above 9p targets 13p

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1 mins. to read
Satellite Solutions: Above 9p targets 13p

It may sound facetious, but there is a lot to be said for having a personal knowledge of the company you are going to invest in, over and above shopping in a supermarket, or having a current account at a bank. With this in mind we look at Satellite Solutions (LON:SAT).

One of the rules of investing is to do your own research, your own research et al, and I would have to say that even a technical analyst such as me believes that this is important. This is because even if one is purely looking at the price action, it is better to know more about the company and the possible price triggers – especially the negatives.

In the case of Satellite Solutions I have not only been aware of the group since it came to market, but I am also clued up regarding the business model. This is because I have installed satellite broadband in an apartment of mine – in the middle of nowhere – on the Spanish coast.


There are a couple of factors to note: the first is that the UK Government really has rural broadband as a priority, and the second is that Satellite Solutions has a commanding position in this space.

This bullishness on the fundamentals front has been mirrored by the trend on the daily chart of the company. Here it can be seen how there has been a rising trend channel in place since as long ago as the first half of 2015.

The resistance line projection is pointing as high as 13p, and this is the presumed 2-3 months target for the stock. Only sustained price action back below recent 9p resistance would really upset/delay the bull scenario.

sat-chart

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