How far will this small-cap struggler fall?

AO World (LSE:AO.)

AO World was one of our possible ISA contenders but unfortunately the share price has failed to make the break above the blue line into safer territory.

Worse, the share has now achieved a series of lower lows, making us wonder whether the 93p proposed as "bottom" in our last report will hold or will matters worsen.

Currently, we've little doubt moves below 115p will invoke the demon at 93p and potentially some sort of bounce, but now it appears we should suggest awaiting 76p presenting itself with the real bottoming potential.

Below such a level, we're floundering to find numbers not prefaced with a minus sign.

To escape this doom, the share price requires firming above 150p to allow us to speculate about 174p, maybe even 192p sometime in the future.

For now, we're inclined to distrust it but suggest, should the price approach 76p, it perhaps allows for a small punt.

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.