Servision: Above latest chart gap could lead to 10p

Mobile live streaming group Servision (LON:SEV) ticks many of the boxes in terms of an exciting small cap situation.

Having been involved in the stock market one way or another for just over 30 years, I have witnessed the boom days of Sid and the privatisations, as well as the crashes of 1987 and 2007-8. But what is worth noting is that although you can outperform the market with minnows if you’re a good stock-picker, easy periods in this space are all too rare. Indeed, one could say that they only happen once every 10 or 20 years.


The latest real opportunity came in the run up to the Dotcom bubble, with mining stocks to the fore at the end of the Noughties. However, we appear to be entering a sweet spot again, with small caps able to get their placings away relatively easily, and New Issues going to a premium almost immediately.

One of the standouts of the moment is Servision, which just over a week ago raised $2m at a 280% premium, while it has just announced the receipt of $1m from a group of New York investors. All of this makes the setup on the daily chart appear all the more healthy, with a gap higher completing a near-term island reversal formation.

Above the floor of the gap at 3p, one would be looking for a top of 2016 triangle formation at 10p over the next 2-3 months. Ideally the 4p level will absorb any dips.