Interactive Investor

88 Energy doubles

26th August 2016 09:58

Alistair Strang from Trends and Targets

When we pull in the markets' end-of-day data, this particular share code - 88 Energy - has often puzzled, as - until now - we've not been asked about it! However, something seems to be happening which has caught folks' attention, judging by the flurry of emails received.

Importantly - from our perspective - the share price has history. If we were to take movements since October last year as "it", we would be as scared as heck, due to moves below 1.85p this year as the price transited into a zone where bottom was at 0.14p.

Thankfully, last year the share price moved into a region where this had a historical high price at 46p and, therefore, we can apply growth characteristics rather than "pump & dump" characteristics.

The situation now is of movement above 3.175p mid-price pointing toward 3.75p next with secondary a visually surprising 6p. We're inclined to take this secondary with a pinch of salt as it appears very probable the previous highs just below the 4p level are very liable to provide some stutters in price growth.

Importantly, if the current growth cycle is being driven by positive news rather than optimism in discussion forums, we shall need to revisit this with closure above 4p due to the extraordinary future potentials.

For now, if this intends to revert to "pump & dump" game plans, the price needs a reverse below 2p as it once again enters a zone with ultimate bottom of 0.14p.

Otherwise, it looks surprisingly strong and the reason for our hesitation above 4p is simply due to the potentials of the price once again virtually doubling.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.