Chart analysis: 88 Energy and Sepura

Sepura and 88 Energy

Sharp-eyed market watchers will have noticed the AIM has made its above our magic number of 813 points. For just three minutes with an upward spike just after the market opened for the day. While the market failed to close above 813 points, we're hopeful it's early warning of some good times ahead for members of the junior market.

Otherwise, Sepura's share price is looking a bit stuffed as, while the recent plunge to 10p seems designed to look like a bottom, when we run the numbers, bottom calculates at 4.25p.

Worse, the very obvious downtrend signals the price needs a miracle above 44p currently (blue line on the chart below) before we dare describe bottom as "in". The dangerous thing is that any near-term weakness below just 18.5p risks the start of a slope down to 6p on the immediate cycle which is certainly in the ballpark of the bottom target.

Near-term, in the event of the share trading above 23.5p, there's a hint signalling the potential of growth toward 29p initially, maybe even 35p and a future attempt at the blue downtrend.

However, for now it looks stuffed but perhaps worth watching if it closes on our 4.25p in the hope of catching some sort of bounce.

88 Energy making its way now below 1.5p would be a 'Bad Thing' as weakness to 1.18p seems about right. But our secondary of 0.12p is downright scary. Or rather, it would be had the price not been exploring these depths during 2015.

Some slight hope comes from the light blue line on the chart below as the share price sleepwalked through this level at the tail end of last year, hopefully broadcasting that the olden days since 2014 are gone and good times still are ahead.

Currently, the price is essentially messing around and needs better than 'blue' (3.6p currently) to signal some proper growth to an initial 5p with secondary a very useful 6.25p.

In terms of Big Picture stuff, this actually needs above 17.5p to be taken very seriously as, for now, it's just messing around.

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.