Here’s what’s needed for Prospex Oil to double

Prospex Oil (LSE:PXOG)

This lot have been appearing in our email recently, so, despite it being a sub-1p share, we opted to take a glance at Prospex Oil's (PXOG) future prospects. It certainly appears to have a chance of going up or down… We’ve a problem with 0.005p, you see!

Recent movements indicate the potential of 0.66p initially with secondary, if beaten, a longer term (or next day, given AIM acceleration) 1.125p. All the share price requires to achieve is trade above 0.64p fairly soon.

Unfortunately, the reason for our gnarly opening sentences come from it failing to actually close above 0.635p mid-price, the prior high, as this tends to give a degree of distrust against immediate movements.

However, the share requires a slip below the red line on the chart at 0.46p to give serious cause for concern, given the price is already trading in a Big Picture region where our “real” targets are prefaced with minus signs.

As always, this isn’t a problem as it simply means we cannot realistically calculate bottom targets with any real hope of accuracy. Perhaps more importantly is our ambition at 1.125p.

When viewed against the utter hammering the price took at the start of 2017, a hope of just above a penny may seem silly, but the key element comes if 1.125p is bettered. This will signify bottom is officially “in” and some real hope for the future can start to germinate, quite a distance before the dashed blue downtrend loitering above 1.4 currently.

For now, some slight hope seems possible and hopefully they’ve some good news about to come on stream.

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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