Third time lucky? How this miner can double

BMR GROUP (LSE:BMR)

BMR Group recently blotted its copybook but, strangely, we're not yet ringing alarm bells. But we are perhaps justified in wringing our hands together in frustration as the share price has crashed, once again, through its historical glass ceiling. Or perhaps its flat trend line in pink, but "glass ceiling" sounds more techie.

The issue arose following the 10:1 shuffle with BMR's share price, as immediately afterward a glass ceiling at the 7.15p level appeared.

The first time the price broke above this level in October last year, it was permitted a few days in the sun before being trashed for a while. The second time it bettered this level in February this year, it experienced nearly two months in the glow of misplaced optimism before the price was manipulated once again below 7p.

Presumably the company managed to extract some bad news to spoil the immediate potentials.

On the basis that third time will be the charm, if BMR somehow manages close above 7p we'll be fairly comfortable it intends some proper movement as an initial 10.25p makes a lot of sense with secondary, if bettered, at a longer-term 12.25p and the need to re-calculate its potentials as things start to get a bit silly in the growth potential stakes.

For now, we're basing our optimism on the red uptrend line on the chart below.

The share price completed March with a plunge below this red line, perhaps an early warning this trend could be broken. But, importantly, the downward spike happened right at the open courtesy of a manipulation gap and price down spike.

We like down spikes at the open as they "generally but never always" presage some coming upward travel. When they are prefaced with a gap, the subliminal message is a bit Theresa May.

As the closing price inset highlights, it appears the market was keen not to allow BMR to actually close below the uptrend as this would take it into the region of 4.35p initially with secondary a very probable bounce point at 3.85p.

But hope can be taken, as it seems we're not the only folk with a red crayon.

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.