FTSE 100 and this AIM explorer get interesting

Argos Resources

For a Budget day, the market proved remarkably placid, with the FTSE 100 closing unchanged. While the usual "wait 24 hours" rule will doubtless apply until folk digest what was actually said, we'd submit that should the FTSE trade above 7,361 on Thursday, things are liable to become upwardly interesting.

But what happened with Brent crude is liable to derail things, along with some of the minor share prices.

Argos Resources is one we've never run the numbers against, but a quick scan revealed an immediate problem.

Absolute bottom on this share calculates at 6.02p, a number it broke at the start of 2015, and reaching a low of 3.5p in the period since. But, crucially, it's still trading, albeit firmly below the 6p level with price movements almost looking completely automated.

From our perspective, we'd be inclined to pay attention quite closely if any miracle returns this share price above 6p as growth to an initial 7.5p should follow, perhaps even 11.25p if the movement is boosted with positive news.

The funny thing is, back in August 2016 the share price sleepwalked through the ruling downtrend and has done nothing since.

Often, this is simply a straightforward sign of a company awaiting positive news, but at least the price is now in a zone where things could move very fast.

Unfortunately, by trading below 6p it remains in a region where negative news could utterly trash the share as we cannot calculate a target without prefacing it with a minus sign.

For now, even a mid-price above 5.5p would provide sufficient reason to raise an eyebrow, indicating something positive about to happen!

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.