A mid-cap share capable of double-digit upside

William Hill (LSE:WMH)

Many thanks for all the emails regarding yesterday's bankers commentary. We felt it needed saying. Thankfully, we were not the only folk irritated.

At this part of the political shambles, the media will often resort to reporting "bookies' odds" on election results in the absence of opinion polls.

As a result, we must assume the betting industry does actually benefit by offering bets on how often someone will say "strong and stable" in any given two-minute interview.

To get the rubbish bit out of the way first, William Hill is trading in a zone where negative news could drive the share price down to 145p in a blink. It needs to better 380p just to escape this trading zone.

However, as the immediate downtrend implies, there's a slight possibility of good news should it manage to creep above the blue line at 305p anytime soon.

A movement such as this is liable to be significant as visually there's been something going on at the 300p level for some time, and a nudge just above points to 323p initially with secondary, if bettered, at a very possible 345p.

Or, in plain English, it's worth keeping an eye on at least for the next few sessions.

Unfortunately, the price ended April by being mangled downward (circled) in a very obvious attempt to stifle upward travel - a move similar to a competitive horse being restrained from starting a race for a few seconds. Except that doesn't happen in real life, only with the stockmarket it sometimes seems!

If trouble is really planned, the price needs to fall below 260p (the red line) to justify alarm as it's liable to be a baby step in the direction of 145p ultimately.

Who knows, maybe the market has a long-term plan?

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.