This share gives hope to contrarian investors
2nd May 2018 09:29
by Alistair Strang from Trends and Targets
Share on
HSS Hire Group (LSE:HSS)
Once upon a time, we thought it funny to decorate our charts with relevant cartoons. This particular idea provoked some complaints about 'unprofessional' reports, specifically with a comedy shark which lurked below 155p on 's share price potentials.
This event happened back in 2015 and, while we dispensed with the shark, it didn't stop HSS share price sinking below 155p a few months later, eventually finding itself trading down at 20p. The drop was not the fault of an innocent shark, simply adding comedy to a distinctly unfunny outlook!
By breaking 155p, we could no longer project "bottom" against HSS. Given the almost precise nature of the forced downward move, it appeared the market had a design on the share price, something which has taken a few years to become evident. Or as evident anything relating to share prices can be.
The current situation with this lot is a bit surprising. Movements since 2015 tend to suggest the price intends to bottom at 10p. It requires exceeding 44p (the solid blue line) to dispel such a notion. The funny thing comes from price shuffles this year as it only requires to close a session above 33.5p to open the door for growth to 46p initially. If bettered, our secondary calculates at 59p.
With the share currently trading around 32.5p, it certainly does not require great movement to give hope for the future. Our fear, given the exquisite nature of forced drops, is of the share experiencing a sudden plunge to 10p in an attempt to stifle an attempt to break the solid blue line. Should the price close above 33.5p, movement down becomes arithmetically very difficult.
Perhaps worth watching, either for a bottom at 10p or alternately the upward trigger. We've provided an interesting 90p, simply due to closure above the solid blue line indicating the price escaping the drop zone.
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.