One share we like today and one for the long term
18th July 2017 09:37
by Alistair Strang from Trends and Targets
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Oxford BioMedica (LSE:OXB)
In conversation, we're quite often asked "what do you like at the moment?" and it's a question which presents surprising difficulty.
From a near-term perspective, for instance, we "like" as it's probably about to show some recovery. But longer term, in the absence of miracles, we really cannot assign any great fondness for the share.
, for a completely opposite reason, falls into this category.
Near-term, we don't particularly like it as the price looks like it intends to hit 6.6p sometime soon. Hopefully the share experiences a bounce at such a level as we quite like its longer-term prospects!
Unfortunately, we've issues if the proposed bounce point of 6.6p is broken, as our secondary calculates at 4.6p, fairly solidly below the immediate uptrend - currently at 5p - and royally stuffing our reasons for "liking" the share from a longer-term perspective.
Visually, the current price cycle calculates as wanting to hit 12.75p, despite the near-term prospect of 6.6p making a guest appearance.
Common sense suggests some sort of stutter can be expected in the future at the 12.75p level, if only because this illustrates the prior highs back in 2015.
The important thing for the longer term comes in at just 13.25p, as trades above this level bring "higher highs" to the table, provoking the potential of 17.5p sometime in the future.
Thus, it's a share we don't like today, but tend to like for the longer term. And Tullow, we like today but distrust for the longer term.
No-one ever said this game was sane!
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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