Sirius Minerals (SXX)

 

Now the charts say Sirius Minerals can double

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Now the charts say Sirius Minerals can double

Sirius Minerals (LSE:SXX)

As train wrecks go, this isn't proving too chaotic. Our last update on Sirius (SXX) was tentative, painting 35p as an upward target - one which was thankfully achieved. However, in the period since the price has displayed a degree of hysterics, none of which are particularly alarming.

The current situation sounds a little dire as we're forced to mention that weakness below 25p shall now anticipate 21.5p and a probable bounce of sorts.

As the chart shows, there's a couple of potential uptrends and this drop target doesn't actually threaten them, leaving us fairly relaxed.

More likely appears growth above the blue line on the chart driving the share to 35.5p initially. Given this creates a "higher high" than previously, and also betters the blue downtrend, above such a point looks capable of generating 42.75p as a secondary.

The secondary of 42.75p is really rather important as closure above this level tends to make it difficult to stop our software reporting a further 64p sometime in the future.

Hopefully, the company continues feeding coins into the "good news" box!

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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. 

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