Interactive Investor

Where buying this AIM oil tiddler could make sense

7th June 2017 09:50

Alistair Strang from Trends and Targets

SAN Leon (LSE:SLE)

Our last update on San Leon was rather cautious as, unlike politicians, we hate extrapolating the future with little data to back it up. However, rather bizarrely, the share has achieved our initial upward target of 55.5p.

And just to keep everyone laughing, it has also achieved our lower long-term target at 31p. Before expecting folk to abase themselves in awe, we suspect the share price is actually unsure of direction.

We are, however, a little concerned at movements since May as, despite the 31p target not being breached, the share price is a little threatening now and below 31p looks perfectly capable of provoking 25p initially with secondary, if broken, at 18p.

Our suspicion is of 25p giving some sort of bounce capability, given this takes the price below the level the share was relisted last year, comfortably covering the manipulation gap.

It's amazing how often bounces happen, just 'cos they make visual sense if you pause for thought. In this instance, we're viewing the low of January 2016 at 25p as viable for a bounce whereas the secondary of 18p takes the share into new territory with the promise of added misery.

Currently, on the assumption 25p becomes a reality, the share price needs to bounce above 40.5p before it exits the immediate rate of descent since the price was forced below the uptrend in February.

Such a movement allows coming growth to an initial 49p with secondary, if bettered, at 56p.

For now, we suspect this shall be worth watching if it explores the depths of 25p.

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.