Interactive Investor

When this 'one trick pony' may show signs of a gallop

25th April 2018 09:09

Alistair Strang from Trends and Targets

Amur Minerals (LSE:AMC)

It used to be the case, when a share price was following a long term downtrend, any positive news was liable to provoke quite sharp upward travel. Nowadays, particularly with one trick ponies, this is often not the case.

By one trick ponies, we refer of course to miners who specialise in a single element - diamond, gold, silver, blind luck, whatever. For some reason, too many of them fail to move properly even when some good news is released. Thankfully, against AMC it appears some hope is possible fairly soon.

To cut to the chase, above 4.9p now suggests coming growth to a useless 5.35p. From our perspective, should 5.35p be exceeded, continued oomph to 6.3p looks possible, a level liable to prove game changing if bettered. There's something a little funny about the 6.3p ambition - should it be bettered, there's a good chance the share price has actually bottomed with a recovery cycle commencing.

By way of a tease, some target levels are painted at 9p and 11.5p, these being "possible" if 6.3p exceeded in the future. Oddly, the calculation around 11.5p virtually matches the high of August 2017, so it's perhaps not entirely silly.

On the flop side, there's a red uptrend currently just above the 4p level. Should the share price manage to close a session below red, 2p is probable. We cannot calculate anything below such a level.

Source: interactive investor               Past performance is not a guide to future performance

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. 

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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