Tern: Cup & handle formation points to 20p

I have been a fan of Tern Plc (LON:TERN) without knowing much more about the company other than the buzzword concept “the internet of things.” However, it could very well be that this and a bit of charting may actually be enough.

I have to say the journey for fans of tech investor Tern has not exactly been enjoyable 100% of the time. This is said on a couple of counts. The first is that reaching profitability has been rather longer in timeframe than many might have expected.

The second is that given the company is clearly at the cutting edge of what is going on in the cyber world, it is clear that your typical middle aged private investor may not always be fully au fait with the minutiae of every RNS Tern may release.


However, with the former head of McAffee invested in the key Device Authority subsidiary, we have just the type of sector “rock star” that can take Tern to the next level.

All of this is currently underlined by the daily chart configuration, where we are looking at a Cup & Handle ultra bullish turnaround after an exhaustion gap to the downside in October. At least while the shares remain above the 50 day moving average at 8.17p one would be looking for significant further upside.

Just how high the stock could swing is suggested by the top of a rising trend channel from the beginning of last year. The implied target is 20p on a 3-4 months view.