Happy New Year!
My proprietary charting software is throwing a wobbly with my Mac's latest update, so these are Yahoo Finance charts:
Zoomed in:
- In this zoomed in chart, the most encouraging upside technical argument is the break of the upper Bollinger Band and the companying upwards implied surge in volatility.
- The relative closeness of the daily close to the upper band is a positive sign as it suggests a smoother run to the upside over a longer period of time as opposed to a short term price spike.
Zoomed Out View 1:
- The first of our zoomed out views helps to illustrate the lack of price resistance to the upside from the current levels. This helps to create an environment where there is little to stall a sustained rise in the share price for the current levels.
- After the break of the small amount of resistance at 0.275, the next resistance levels are placed at 0.35, 0.45 and 0.52
Zoomed Out View 2:
- I've added an RSI here as I am aware that many traders on the AIM use this as an indicator - in my experience, the RSI can be very overbought or oversold in any direction for long periods of time in the micro cap stocks - the lack of algorithmic driven trading plays a large part in this.
- While I don't personally use the RSI in my regular trading activity, the movement through the 50 level is especially encouraging as it corroborated the upside bias expressed in my above Bollinger Band analysis and suggests more upside potential from these levels.
My conservative shorter term targets would be ~ 0.52p resistance level, with the sky being the limit over the medium and longer term as news flow begins to blossom into the new year - the 3D TV investment is particularly exciting, in my opinion!
The only potential downside I could see here would be if any fundraising was carried out (which I highly doubt, because they had at least six figures of cash when I last did a fundamental check) at these levels.
Enjoy,
The Masked Stock Trader
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