An AIM share worth keeping an eye on

Versarien (LSE:VRS)

This lot provide an ideal example of why we don’t need research companies. Suddenly, we’re being emailed by a bunch of different folk asking us to run the numbers against a share we’ve never heard of. We don’t need to check fundamentals, that’s the investors’ job.

The immediate downtrend for Versarien (VRS) in ‘blue’ is sitting around at 26.5p currently, and our calculations indicate movement above ‘blue’ should prove capable of propelling the share price toward 29p.

At this point, it all becomes a bit fraught as, while 29p sounds useful, closure above 27.5p – the high earlier this year – looks pretty essential if a long-term cycle toward 45p is about to enter the frame.

In fact, it’s very possible closure above ‘blue’ (26.5p) should serve to justify a proper growth cycle commencing.

There are very few flies in the ointment with this lot, aside from the salient detail it hasn’t yet bettered ‘blue’. The red uptrend for 2017 is the only valid uptrend available, and it signals the price requires to slither below 14p to indicate trouble in the direction of 9p initially with secondary, when broken, at a bottom of 3p.

Visually, this appears unlikely, so perhaps worth keeping an eye on.

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.