BMR Group (LSE:BMR)
Brexit and BMR Mining (BMR) have quite a bit in common. For instance, despite a lot of talk, the last few months have been punctuated by the production of absolutely nothing. Additionally, people tend to get bored with an absence of action. However…
BMR is approaching a trend we’re not sure exists. The dashing blue line on the chart below dates back to 2011, and we have not entirely figured out if the price is reacting to the imaginary line.
The immediate danger, though, is of weakness below 3p probably causing a plunge toward 2.35p.
This particular scenario stinks, as 2.35p would represent a new all-time low for BMR and, while a final plunge before tackling a major trend makes sense, we’d be extremely concerned should 2.35p break for any reason, as we cannot calculate below such a point.
On the basis our imaginary trend line proves to be the real deal, common sense along suggests any break above 4.5p during November should bring an initial 5.6p to the fore. Secondary, if (when) bettered, is a more optimistic sounding 7.1p.
If the share price opts to follow common sense, the visuals suggest any weakness which reaches 3p should bounce from the red line and then, it all becomes a matter of buying lucky charms in the hope a break above the dashing blue line provides some upward entertainment.
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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