When this share halving becomes 'inevitable'

Game Digital (LSE:GMD) and #Nutters

Hashtag Nutters is a reference to us and a favourite area of irritation. The "Alphabet Game" - earlier alphabet entries tending to be more active - in which the stockmarket often indulges, has once again made itself known.

In shares we monitor, 131 "A-M" shares feature against just 81 "N-Z" stocks so far in May. The conclusion remains that, if you want a faster mover, then look at the first half of the alphabet.

Game Digital has experienced a pretty torrid time over the last few years, proving an early entry in the alphabet does not mean fast growth, just faster movement regardless of direction!

The situation now is a bit fragrant as the price dare not - from our perspective - close below 40p as it tends make travel to 20p almost inevitable.

Perhaps of greater concern is we cannot calculate a secondary without using minus signs. The conclusion, therefore, is that, should this appear at 20p, some sort of punt is possible in the hope of a bounce. But it's dangerous.

Some slight hope can be taken from the blue line on the chart as, despite the share price sleep walking through the trend, it has only experienced a 6p range in the period since.

Perhaps the blue line will prove to be valid, as anything now above 47p should provide an initial 53p with secondary, if bettered, at a longer term 61p.

As always, there's a necessary limit to our optimism as the price ideally needs an excuse to better the prior bonk against the trend at 69p before we'll gush enthusiastically about its future.

For now, about the nicest we dare suggest comes from movements through most of January where a glass ceiling was poured at 60p. Perhaps closure above this level will prove an early harbinger of good times ahead.

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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.