Expectations changing at Seeing Machines

Seeing Machines (LSE:SEE)

We last reviewed Seeing Machines back at the start of 2015 and unfortunately the share price used the period since to studiously avoid bettering our criteria for any upward travel. However, to judge by a bunch of emails, expectations perhaps are changing.

The ruling downtrend since 2014 is currently around 4.716p and doubtless folk will have noted the price actually briefly bettered this on 23rd October. Additionally, the movement above the trend was not due to a spike upward in the opening minute of trade and generally this will suggest the growth to be genuine, giving hope for the future.

Now, the situation is of closure above 4.71p carrying the expectation of coming recovery to 5.9p initially with secondary, if bettered, at a longer term 8.6p.

In fact, if we apply our glass ceiling rules, even closure above 4.64p should serve to indicate some upward integrity can be viewed. Perhaps, once again, Seeing Machines is worth keeping an eye on.

Of course, there's a downside. Last time we looked at this, we'd speculated a bottom at 3.25p and the share actually managed to close below this level at 2.6p. From our perspective, this was a bad thing, as we couldn't calculate misery below 3.25p.

The immediate situation places the long term uptrend at 2.875p, comfortably distant from the current share price. Moves below 2.875p tend now to point rather firmly to an ultimate bottom of 1p. Visually, unlikely - we hope!

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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