AIM on verge of upward surge

The AIM market & Asiamet Resources (FTSE:AXX & LSE:ARS)

With so much to be miserable about, the AIM market (AXX) appears on the verge of yet another upward surge. Currently, the index is trading around 1,009.6 points, needing only better than 1,016 points to signal the potential of ‘some happy times’ for ‘some’ promising AIM components.

Above 1,016 and we’re looking for a growth phase to 1,135 points initially with secondary, if bettered, at a longer term 1,245 points. As this effectively proposes a near 25% upward cycle, surely this largesse will be spread amongst some companies which desperately require an injection of oomph?

We always bang on about the importance of Higher Highs and the AIM is certainly achieving this from a Big Picture viewpoint. This year, it bettered the highs of 2011 and maintained the rise and now, we’re awaiting the near-term highs of 1,016 exceeded to once again experience optimism.

As a result, we’re going to look at some ‘AIM’s’ this week which show some decent potentials.

Asiamet Resources (LSE:ARS)

Asiamet (ARS) has been proving quite hesitant at making any form of upward break, despite the share price sleepwalking through its long-term downtrend since 2007.

Worse, recent dance steps with the share price tend to suggest the possibility of some near-term weakness appearing, and below 4.7p calculates a relaxation cycle commencing toward 3.9p or so.

Visually, this seems not a disaster.

One of the market terms we utterly hate is “back-testing the trend” as there’s absolutely no reason for it to happen from a software perspective. But, during 2017, through gritted teeth, we’ve been forced to admit that yes, this year it is happening.

If this is indeed the case with Asiamet, should the price manage slide downhill toward 3.9p it suggests itself presenting a valid entry point as the future potentials don’t stink.

With closure above 5.5p – or intraday trades above 5.65p – we’ll regard the share as heading upward to an initial 8p next, which suggests a pretty reasonable rise.

Secondary, rather surprisingly, comes in at 16p, but we’d strongly take that with a pinch of salt until the price actually closes above 8p.

On the flip side, below 3.25p would scare us, suggesting a return to the 1p level at best.

 

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.

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