Silence Therapeutics: Broadening triangle formation targets 150p

1 mins. to read
Silence Therapeutics: Broadening triangle formation targets 150p

It has been a long wait for fans of Silence Therapeutics (LON:SLN) to get a decent rebound in the stock, with the biotechnology group serving up quite a journey ahead of the latest news regarding its intellectual property estate.

Having interviewed Silence Therapeutics a number of times, and having become familiar with what it is trying to achieve, I have to say that it is quite understandable that the market perhaps does not appreciate this company enough.

To say that we are dealing with rocket science here would be something of an understatement. Indeed, one could say that what CEO Ali Mortazawi and friends are involved in makes rocket science appear like child’s play. The latest newsflow centres on the group expanding its patent protection on its intellectual property, a sign that it believes it is making decent progress in the field of gene silencing.

What can be seen on the daily chart is the latest sharp recovery for the stock, something made all the more acute by the double unfilled gaps to the upside this week. All of this suggests that provided there is no end of day close back below the 50 day moving average at 85p we could be treated to significant further upside. The initial target is the 200 day line at 103p over the next couple of weeks. However, 150p at the top of the broadening 2016 triangle is possible over the next 2-3 months, if we clear the 200 day moving average cleanly by the end of this month.

SLN chart

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