A small-cap powered up with a potential bounce

Bushveld Minerals (LSE:BMN)

It’s funny how just the mention of the first two letters of a company share code can provoke a frisson of discomfort. When asked about BMN, we immediately thought “BMR”, closely followed by some rather unkind – though deserved – epithets.

However, Bushveld Mineral (BMN)’s share potentials came like a breath of fresh air as something quite positive appears to be occurring with this price. In what passes for ‘normal’ calculations, the current rise should have fizzled at 14p.

As the share actually closed the 3rd April at 14.95p, we’ve some hope for the future as it appears some real strength is evident.

To cut to the chase, movement now continuing above 15p should enter a cycle toward 19p next. If bettered, secondary calculates at a longer term (albeit somewhat unlikely unless boosted by positive news) 25p.

We should also point out the strong possibility of a stutter at 16.5p fairly soon but we’d hope big picture imperatives shall boost the price over such a point toward the 19p target.

If trouble is planned, we’re inclined to rely on the sudden downward spike on March 26th as this appears designed to provide a near term uptrend. It creates the scenario where the market needs break the dashed red line – currently 12p – to indicate a slowdown potential. Such a movement should prove capable of reversal to 9.5p and – hopefully – another bounce.

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. 

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