Here’s where this small-cap could rebound

Lionsgold (LSE:LION)

A few emails, plus the urge to mock the US dentist who assassinated a lion, inspired a look at Lionsgold (LION).There’s little doubt the share price is spending too much time in front of gun fanatics as had it been permitted to close below 2.425p we’d be writing an obituary.

Unfortunately, it really is that serious, due to closure below such a point (aka the current share price) being very capable of provoking reversal toward 1.7p initially. Secondary, should such a level break, is somewhere around minus 2p though it would be churlish not to hope for some sort of rebound once the prior lows are attained.

The “however” is fairly important as some effort appears to be going into inhibiting the share making “lower lows”.

An immediate downtrend is currently lurking in blue at 3.5p which, if bettered, should prove capable of lifting the price to an initial boring 4.25p, At this point, things get a little vague as while the secondary, should such be exceeded, is at 4.8p, it could equally shoot to 5.75 if an upward surge is accompanied by positive news.

Who knows, perhaps the lion will do the world a favour and get a dentist in its sights…

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.

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