Seeing Machines has 8p target in its sights

It seems somewhat ironic that in a week dominated by Apple’s potential takeover of McLaren in order to go further down the road of driverless cars, one of the best performing stocks of the week on the UK market has been Seeing Machines.

Seeing Machines (SEE): Technical target as high as 8p

Considering that we are supposed to be just a few years away from the advent of the driverless vehicle becoming a reality, it seems a little strange that shares of Seeing Machines delivered a near vertical move on a breakthrough fundamental development, as the business model here is based on the idea of driver monitoring technology. The jewel in the crown here is the new FOVIO chip which is able to track eye and head movements. The big win is that it at least takes us down the road of the driverless goal by improving the semi-autonomous driving process. One would presume that the sooner this can be finessed, the faster the world will be able to consign the profession of taxi driver to the history books. As far as the technical position here is concerned, we have seen a vertical spike above the 200 day moving average at 4.14p this week, a sharp flag as to the change of trend here for the shares. The chances are now that, provided there is no weekly close back below the 200 day line, in the meantime we shall see the stock head as high as the top of a rising trend channel from as long ago as June last year. This has its resistance line at 8p, a target which could be hit as soon as the end of next month. In the meantime any dips towards the 5p zone to improve the risk/reward of going long are regarded as buying opportunities.