Wandisco: Gap higher through 50 day line targets 650p

1 mins. to read
Wandisco: Gap higher through 50 day line targets 650p

One of the golden rules of investing is that you should understand the business you are invested in. In the case of Wandisco (LON:WAND), this might not be so easy for some.

When Wandisco came to market bulls thought that it would capture the Big Data revolution. Call me old fashioned, but it seems to be that Big Data is really a fancy name for number crunching. Clearly, the exponential increase in computing power and data storage has put companies like Wandisco directly in the frame in terms of taking advantage of all things digital and cyberspace.

The point has been underlined today with the announcement of Wandisco’s biggest ever contract, not too long after siren voices apparently suggested that the company could meet a sticky end. While the recent history of Imagination Technologies suggests that anything can happen in the new economy space, with a $4.1m contract in the bag it would appear Wandisco will be comfortable for quite some time.

From a technical perspective the shares have served up one of my favoured signals, a gap through the 50 day moving average, now at 416p. While above this on an end of day close basis the upside here could be as great as a December rising trend channel top of 650p. The time frame on such a move is regarded as being the next 1-2 months.


Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *